Hello All,
I have a pretty decent background in Austrian economics through independent study in addition to my BS in Economics. I am currently studying for my CFA Level I exam. In addition, I have been reading a lot of investment classics such as The Intelligent Investor, A Random Walk Down Wall Street, etc. My first question is, other than Peter Schiff’s books, are there any investment books written from an Austrian perspective? I understand the Business Cycle, but are there any technical books to help identify the creation of a bubble and act accordingly?
While reading most of the investment books and A Random Walk Down Wall Street in particular I found these books all had no idea about Austrian Economics and take it as a given that downturns are practically impossible to forecast. A Random Walk contends that it is pretty much impossible to beat the market in the long run, and those who do are only doing it by luck (much in the same way flipping a coin and having it land on heads 10 times in a row). The author, Malkiel, grants that even if market inefficiencies exist, they are quickly seized up by the public and there is no longer an inefficiency.
Does the Austrian Theory of the Business Cycle constitute an exception to this theory of efficient markets? Theoretically, it should be obvious that knowledge of bubbles forming would allow an investor to profit or at least avoid loss, thus beating the market on a consistent basis. Is there any documentation of this?