If there is one thing that those in the finance industry should understand, it is how markets function. Indeed, it has long been my contention that anybody involved in financial markets who does not have a deep understanding of markets is taking money under false pretences.

The starting point to understanding markets is the Efficient Market Hypothesis (EMH) which provides the straw man from which an understanding of markets is best developed.

But, the EMH is amazingly poorly understood given the attention that it has received over the last (a...