2 thoughts on “Fama speaks.

  1. Great interview. Efficient market is a useful theory (and something to which we all subscribe because it has utility and a deeper sense of just plain rightness), but like most theories, it is based on some thin assumptions. Like the concept that people will act rationally to maximize value.

    We’ve already debunked that foundation of rational behavior, which means that the theory is useful but suspect. A bit like the irreconcilability of quantum mechanics and relativity (the basis for the recent Nova program that features Gene Fama — http://video.pbs.org/video/1479100777).

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