Briefly outline the rationale behind the efficient market hypothesis and explain its implications for technical and fundamental analysis.

The efficient market hypothesis maintains that American financial markets are characterized by almost instantaneous dissemination of information concerning investment opportunities, especially stocks. That in turn implies that all relevant, available information is just about always reflected in stock prices. This is a direct refutation of technical analysis, because it says all information from historical patterns of price movement is already reflected in prices, and further study of those movements won't help investors earn above average returns. The EMH also says fundamental analysis by individual investors won't do them much good. This is because professional analysts are continuously engaged in fundamental analysis and they disseminate anything an individual might deduce before he or she does.