Can anyone beat the markets?

Defending efficient markets video at Financial Times:
Gene Fama, inventor of the efficient markets hypothesis, says it remains the best way to view markets in spite of the recent crisis and the dotcom bubble. Professor Fama tells James Mackintosh, FT investment editor, that investors should stop trying to beat markets and use passive index-trackers. (6m 51sec)
Dr Fama references Dr Sharpe’s work that makes sense … how can all active managers beat the market when the market is the sum of everyone’s participation? Thus, while some active managers may beat a market index on year, their persistency and consistency does not remain. This is demonstrated through Standard & Poor’s SPIVA studies (see Scorecards and Persistency). Even if a manager might do this … the question is … how does one identify them ahead of time?

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