Eugene Fama and David Booth on the Birth of Modern Finance
Odd Lots6 Mar 2025

Eugene Fama and David Booth on the Birth of Modern Finance

The 1970s were a pretty eventful time in markets. There was high inflation, the end of the gold standard, and a stock market crash. There was also a bunch of ideas coming out of the University of Chicago that would go on to be famous and highly influential for investors. Perhaps the most prominent is the Efficient Market Hypothesis, posited by Nobel Laureate Eugene Fama, which says that markets are right and it's useless for investors to try to outguess them. Fama later teamed up with David Booth, the founder of Dimensional Fund Advisors, and has been a longtime collaborator with the firm, which now has $777 billion under management. Today, they're releasing a documentary directed by Errol Morris and called "Tune Out the Noise," which chronicles this important time. We speak to both of these investment legends about the development of their theories, how they put them into practice, subsequent criticism, and what comes next.

Read more:
Wall Street Math Wizards Are Decoding Private-Market Returns
Upstarts Challenge a Foundation of Modern Investing
Cliff Asness Says Markets Are Less Efficient — And Social Media May Be to Blame

Odd Lots is coming to Washington, DC! Get your tickets for our Jones Act debate here.

See omnystudio.com/listener for privacy information.

Denne episoden er hentet fra en åpen RSS-feed og er ikke publisert av Podme. Den kan derfor inneholde annonser.

Episoder(1243)

Lev Menand and Nathan Tankus on Why Fed Independence Is Now Hanging by a Thread

Lev Menand and Nathan Tankus on Why Fed Independence Is Now Hanging by a Thread

Last August, President Trump made the unprecedented choice of moving to fire Fed governor Lisa Cook. The administration claimed she was being terminated with cause, citing an ongoing investigation in ...

17 Jul 1h 5min

Why Soccer Analytics Works Like Volatility Arbitrage Trading

Why Soccer Analytics Works Like Volatility Arbitrage Trading

American sports fans have long been comfortable talking in the language of stats and analytics. Soccer embraced the 'moneyball' revolution later; the sport was once perceived as too complex to model a...

16 Jul 51min

NY Governor Kathy Hochul on Her One Year Data Center Moratorium

NY Governor Kathy Hochul on Her One Year Data Center Moratorium

On July 14, New York Governor Kathy Hochul announced a one-year moratorium on new large data center projects in the state. It's the nation's first such pause at a time when anti-data center politics i...

15 Jul 42min

Why AI Might Actually Create More Work for Lawyers

Why AI Might Actually Create More Work for Lawyers

It seems obvious that among the many industries that AI might disrupt, the legal profession might face some of the most adverse outcomes. When clerical, research-based tasks like searching through dat...

13 Jul 55min

The Korean Levered ETFs Shaking Markets All Around the World

The Korean Levered ETFs Shaking Markets All Around the World

Retail participation in the stock market is booming. And of course the biggest story in markets is the AI trade, which has created an incredible amount of demand for chips and memory. These two broad ...

10 Jul 43min

One of the World's Largest Hedge Funds on Its 86x Growth in Token Spending

One of the World's Largest Hedge Funds on Its 86x Growth in Token Spending

We've gone through a number of a technological revolutions in investing, whether it was the dawn of the high frequency trading era or the introduction of robotraders. When it comes to AI, the big ques...

9 Jul 52min

These Are the Sharps Actually Making Money on Prediction Markets

These Are the Sharps Actually Making Money on Prediction Markets

Here's a couple things about prediction markets. A lot of it is pure gambling and speculation, much of it on things with very little economic relevance. Another fact is that in all likelihood, if you ...

6 Jul 48min

How a Major Grocery Store Chain Can Dramatically Lower the Cost of Food

How a Major Grocery Store Chain Can Dramatically Lower the Cost of Food

In June, grocery giant Aldi opened a store just off of Times Square in Manhattan. It's the company's first location in Midtown and, according to their US Chief Commercial Officer Scott Patton, Aldi ha...

3 Jul 50min

Populært innen Business og økonomi

stopp-verden
dine-penger-pengeradet
rss-penger-polser-og-politikk
lydartikler-fra-aftenposten
e24-podden
rss-borsmorgen-okonominyhetene
rss-pa-konto
pengepodden-2
tid-er-penger-en-podcast-med-peter-warren
utbytte
morgenkaffen-med-finansavisen
rss-skravla-gar
finansredaksjonen
livet-pa-veien-med-jan-erik-larssen
okonomiamatorene
pengesnakk
lederpodden
liberal-halvtime
rss-impressions-2
rss-kron-podden