As we all know, for Ritchie has been telling us so at length, the efficient markets hypothesis is wrong. Markets do not process information efficiently therefore wise and good people like Ritchie should countermand what markets say and do.
I can’t be alone in thinking coronavirus is now the biggest short term problem facing our economy: stock markets in the USA and UK continued their downturns yesterday. The reality that this virus could trigger a major economic crisis is beginning to dawn on markets.
So, new facts arise and prices change in markets. That looks like markets processing information efficiently to me. And as Ritchie himself is pointing out, those markets have reacted faster than politicians have done. And that Ritchie is taking the market price movements as a guide to the seriousness of the problem shows that he thinks markets are processing information efficiently too.
Because, of course, people who thought that market prices don’t matter, or don’t contain information, wouldn’t use market prices as guides to their own thinking, would they?