Posted: Nov 07, 2013 6:10 am
Disagree re: Fama, not necessarily the other guys. The EMH is bunk. Check out the following for a compelling analogy, the "Efficient Atmosphere Hypothesis":
http://physicsoffinance.blogspot.com/20 ... brium.html
Also, one of the heterodox economic books I read recently—towards which I have mixed feelings (see here: http://www.amazon.com/review/RDT0SXS4M5 ... nskepti-20) included the following telling excerpt:
What a tool. Seriously, what a frigging tool.
>yfw 25-standard deviation events in financial markets
http://physicsoffinance.blogspot.com/20 ... brium.html
Also, one of the heterodox economic books I read recently—towards which I have mixed feelings (see here: http://www.amazon.com/review/RDT0SXS4M5 ... nskepti-20) included the following telling excerpt:
While Kahneman was eventually awarded the economics version of the Nobel Prize for his work (Tversky had died), the findings of behavioural economics have long been viewed suspiciously by the mainstream. To efficient market purists, things like bubbles, or irrational behaviour, are inventions of people who don't understand the wisdom of the market. As Eugene Fama said in 2007, at the height of the US housing bubble, "economists are arrogant people. And because they can't explain something, it becomes irrational ... The word 'bubble' drives me nuts."
What a tool. Seriously, what a frigging tool.
>yfw 25-standard deviation events in financial markets