Until they aren't anyway. Look at the AAA rated junk mortgage backed securities. Or Theranos - due diligence from a biology processor making money on the side could have told you that not all blood is sourced equal and the statistical minimum sizes to be able to detect certain components of low concentration accurately. Attempting to screen blood noninvasively would be more possible and that is a far harder problem that would call for several chained breakthroughs. Forget a research team - one person could beat the market without so much as cracking a book!
A perfect market requires perfect knowledge which in addition to requiring science fiction predictive abilities would have very weird implications given causality issues. Like loans being marginal in rates or not granted (if you know ahead of time they will be good for it is guaranteed profit and everyone with capital could give a small but net winning offer). If they knew they would lose nobody would give a lossy loan.
The stock market would be bizarrely illiquid or obsolete as funding is already guaranteed. Few would sell for what they see as a worse investment. Being able to tell if loaning five billion to an eccentric scientist would pay off or not.
Interesting hypotheticals aside it is important to remember that while good at managing supply and demand usually the market is not an oracle nor a god. Going against what everyone thinks is worthless is one way to strike it rich.
A perfect market requires perfect knowledge which in addition to requiring science fiction predictive abilities would have very weird implications given causality issues. Like loans being marginal in rates or not granted (if you know ahead of time they will be good for it is guaranteed profit and everyone with capital could give a small but net winning offer). If they knew they would lose nobody would give a lossy loan.
The stock market would be bizarrely illiquid or obsolete as funding is already guaranteed. Few would sell for what they see as a worse investment. Being able to tell if loaning five billion to an eccentric scientist would pay off or not.
Interesting hypotheticals aside it is important to remember that while good at managing supply and demand usually the market is not an oracle nor a god. Going against what everyone thinks is worthless is one way to strike it rich.