alt Hacker NewsThat definition would mean that smarter investors, who can think faster and further ahead, get information faster. And therefore have information now that others do not.
That seems to be directly the opposite of the common definition of the EMH, which emphasizes how the market reacts to new information. And not how it produces information. For example in TFA:
"the market rapidly responds to new information"
Wikipedia starts the "Theoretical background" with an example on how information becomes widely available to all investors, not how one fast smart thinker generates it:
Suppose that a piece of information about the value
of a stock (say, about a future merger) is widely
available to investors.
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>That definition would mean that smarter investors, who can think faster and further ahead, get information faster. And therefore have information now that others do not.
And that is trivially true
The smartest, fastest investors are the ones who make a profit by incorporating their information into the stock price in the EMH. The stock price can't move on its own. Under the EMH, someone has to be the first to trade stock based on information so that the stock price reflects it. When they say "the market rapidly responds to new information", that means investors with the new information are buying or selling accordingly. It's not opposite at all.
How the information gets produced is irrelevant to the EMH. Whether it's obvious or takes hard thinking, either way, once investors obtain the information, they will trade based on it, and that will move the stock price.