When you’re one step ahead of the crowd, you’re a genius. When you’re two steps ahead, you’re a madman
– Shlomo Riskin
I was recently asked by a former colleague why I had increased my exposure to certain sectors in the equity market. After all, the information that had informed my decisions must already be priced in since the market is efficient, he argued. One could spend plenty of ink on the definitions of market efficiency as is usual in academia, but let’s just not.