Adaptive market hypothesis

Adaptive Market Hypothesis (AMH) is like an idea that suggests that the markets can adapt to changes and that what's happening in the markets today is a result of the past - like how it's always been. It means that even if people don't know what is going to happen in the future, the markets will adjust to new information and adjust to different conditions. So even though the markets may seem unpredictable or random, it is actually made up of lots of different decisions that eventually add up to an overall picture. This can help investment professionals make decisions about which investments to make as the markets change.