Definitely information asymmetry is important in stock trading as it allows one to entry ahead of the surge and to sell before the stock crashes. I feel that this is somewhat similar to insider trading and is unethical and would resist profiting from such information. Information is the most important factor especially for significant swings in either direction, especially with government legislation which will have wide and big impact.
Do You Think Information Asymmetry Matters in Stock Trading?
Last year, stocks held by Democratic lawmakers rose by 31%, those held by Republican lawmakers rose by 26%, while the S&P 500 index rose by 24.9%.
However, Duan Yongping, often referred to as the "Warren Buffett of China," stated in a speech last week that information asymmetry has little impact on stock trading. He argued that investing is not a zero-sum game, whereas exploiting information asymmetry is essentially a zero-sum game.
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What do you think? Is information asymmetry important in stock trading? What do you believe is the most crucial factor in investing?
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