Reuters blogger Felix Salmon wrote Tuesday:
A tweet from Joe Weisenthal yesterday, on the subject of Annie Leibovitz, is I think revealing of a particularly American mindset: call it the Wealth Corollary of the Efficient Market Hypothesis. In a nutshell, it says that if you’ve made lots of money, you must be pretty smart.
Isn’t that totally wrong? Under the efficient market hypothesis, if you’ve made lots of money on the market, you must be pretty lucky. (Whether it takes smarts to make lots of money as an art photographer, or a baseball player, or a breakfast-cereal magnate, is surely outside the scope of the EMH.)