Acting on "Inside Tips" Active Fund Managers

Acting Rationally in Efficient Market Hypothesis

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Much of financial theory is based upon the idea that individuals act rationally and consider all available information in their decision-making processes. As this relates to the stock market, individuals in our industry commonly refer to this as the "efficient market hypothesis." Surprisingliy, researchers have uncovered an extremel large amount of evidence that this is frequently not the case; that we do not act rationally or consider all available information as this relates to investing and other life decisions.
Source: http://www.investorguide.com/igu-article-1049-stock-strategies-investing-driving-you-crazy-maybe-its-because-you-already-are.html