Three forms of EMH and is there has another better way to achieve market efficiency in the future?

Three forms of EMH and is there has another better way to achieve market efficiency in the future?  

  

While discussing financial market efficiency in lecture 3 at class, I knew there are advantages and disadvantages in three market forms, and I was wonder if there was another way to get more efficient in the market. if there were, could we track to reach it in the right way?  

  

Efficient Market Hypothesis (EMH) has three forms: Weak form, Semi-strong form,  and strong form. Weak forms like using historical data or information to predicate stocks. It is an inaccuracy way to forecast share price because we all know the share price changed in a random fashion and there is no systematic link between movement and subsequent ones. At the opposite way is strong market form, it shows some people can access information before other investors so that they can gain abnormal gains. It is unfair for the public for they cannot get news as easily as “insider dealers”. Another one is Semi-strong form. It shows the speed and accuracy of share price responses to new information, but it’s difficult for most investors to make an investment in the millisecond after gaining new news.     

  

I don't think these three efficiency market forms are ideal, I think millions of companies affected by market movements should protect themselves from any form of greed distortion. Warren Buffett on the academic dominance of Semi-Strong Form thought: “I’m convinced that there is much inefficiency in the market . . . When the price of a stock can be influenced by a ‘herd’ on Wall Street with prices set at the margin by the most emotional person, or the greediest person, or the most depressed person, it is hard to argue that the market always prices rationally. And also, Chicago professor Eugene Fama in 2009 said, when asked about the responsibility of his Efficient Market Hypothesis theory for the Financial Crisis: “The premise is fantasy. Most investing is done by active managers who don´t believe that markets are efficient. . . ”  

  

Efficiency in stock market changes is undeniable, as a result of the evolution, the trader's productivity is higher than before. From traders ' shouting and bells ring to silent trading on the computer. Nowadays, many investors try their best to gain huge revenue from the stock market without sense and sensibility. It reminds me Gordon Gekko roles in "Wall Street "movie in 1987. He always shows his talent in investment, where this lone wolf claimed: "sometimes I wonder if you let money get the best of you”. In my view, personal behavioral in finance can be considered as a big cause of market inefficiency and that is why employers are keeping try to take human irrationality out of traders.  

 

Although the stock market has changed dramatically, in this professional field, many traders who can gain information and hold great control do some unreasonably to mess the system. It’s pathetic.  

Can we develop non-human operational global Stock Exchange by using automated and complex algorithms, if possible, in the future? Nobody can control stock information to gain abnormal profits and assets can be distributed rationality. The electronic intelligent cloud will calculate figures with fewer human errors or without errors. Everything going to reasonable and more efficiency, isn’t it?