Reconciling Efficient Markets with Behavioral Finance: The Adaptive Markets Hypothesis

"The battle between proponents of the Efficient Markets Hypothesis and champions of behavioral finance has never been more pitched,
and little consensus exists as to which side is winning or the implications for investment management and consulting. In this article, I review the case for and against the Efficient Markets Hypothesis and describe a new framework—the Adaptive Markets Hypothesis—in which the traditional models of modern financial economics can coexist alongside behavioral models in an intellectually consistent manner".