In 2010, Toyota recalled millions of automobiles to fix a potentially hazardous problem known as sudden acceleration. Writing in the Wall Street Journal, James Stewart gave investors the following advice:
"Toyota shares were over $90 as recently as Jan. 19, 2010. They closed Tuesday (February 02, 2010) at $78.18, which strikes me as a modest decline under the circumstances. If I owned shares, I'd seize the chance to get out." (Source: James B. Stewart, "Toyota Recall Should
Warn Investors Away," Wall Street Journal, February 3, 2010.)
Would a believer in the efficient markets theory be likely to follow Stewart's advice?