How can the financial markets be simultaneously both efficient and, occasionally, investors behave so irrationally? How is it possible for speculative bubbles to form? In the first week of a microeconomics course, college students are taught about supply, demand, and equilibrium pricing. For every investor buying a stock, betting that it will go up from a particular price per share, another investor is selling the stock, essentially making the opposite bet. Or, more likely, a computer algorithm. Continue reading Investing for Retirement: Financial Market Efficiency