Market efficiency theory

Market efficiency theory suggests that financial markets quickly incorporate all available information into asset prices. This means that stock prices reflect everything known at a given moment, making it challenging to consistently outperform the market through expert analysis or timing. There are different levels of efficiency: strong form (all information is reflected), semi-strong (public info is reflected), and weak (past prices are reflected). Essentially, in an efficient market, it's nearly impossible to find undervalued or overvalued stocks consistently, as prices always adjust rapidly to new information.