Eugene Fama Vs Richard Thaler – Are Markets Efficient?

Eugene Fama – Are Markets Efficient? by Jeffrey Carter, Points And Figures

I totally love this discussion. It’s one reason that if you get an MBA, you want to do it at Chicago Booth. They smash differing ideas together-and they are tolerant. More people should be tolerant. Hal Weitzman really has a great series that he has put together. I’d encourage you to watch a lot of the videos.

Michael Mauboussin: Challenges and Opportunities in Active Management And Using BAIT #MICUS

michael mauboussin, Credit Suisse, valuation and portfolio positioning, capital markets theory, competitive strategy analysis, decision making, skill versus luck, value investing, Legg Mason, The Success Equation, Think Twice: Harnessing the Power of Counterintuition, analysts, behavioral finance, More Than You Know: Finding Financial Wisdom in Unconventional Places, academics , valuewalkMichael Mauboussin's notes from his presentation at the 2020 Morningstar Investment Conference, held on September 16th and 17th. Q2 2020 hedge fund letters, conferences and more Michael Mauboussin: Challenges and Opportunities in Active Management Michael Mauboussin is Head of Consilient Research at Counterpoint Global in New York. Previously, he was Director of Research BlueMountain Capital, Read More

Markets make decisions better than centralized bureaucracies.  There is no systematic way to identify a bubble.  You only see them in the rear view mirror.  They do talk about the tech bubble of the early 2000’s.

Free markets are under assault today.  No one believes in them.  They feel as if all markets are rigged.  If there is one disservice The Big Short did, it’s to call all markets rigged.  The Big Short failed to show how government regulation caused the dislocation in the free market.

Eugene Fama postulated the theory of efficient markets back in 1962 and has spawned a whole series of academic research confirming-and poking holes in the theory. Richard Thaler has postulated that markets are not necessarily rational, bringing about a new field in economics called Behavioral Economics.  He wrote a book Nudge which illustrates his theory.