Why Cliff Asness Believes Markets Are Getting Dumber
Capitalisn't12 Juni

Why Cliff Asness Believes Markets Are Getting Dumber

Are financial markets becoming less efficient? Famous investor Cliff Asness certainly thinks so. In his paper published last year, “The Less-Efficient Market Hypothesis,” Asness argues that social media and low interest rates, among other factors, have distorted market information so that stocks have become disconnected from their true values. This distortion has directed funds toward undeserving assets and firms and staved off necessary market corrections.

Asness is the founder, managing principal, and chief investment officer at AQR Capital Management. He is an active researcher on various financial and investment topics and received an MBA and PhD in finance from the University of Chicago Booth School of Business. From her early days as a journalist reporting on Wall Street, Bethany recounts Asness as an outspoken, successful quant investor: one who invests based primarily on the fundamentals of the market rather than those of the firm. She also remembers him being “colloquial” and willing to be “experimental” with ideas. Asness’s recent paper continues that experimental style as he challenges the legacy of the efficient market hypothesis on which his PhD advisor, Nobel Prize laureate Eugene Fama, made his name, and which argues that asset prices reflect all available information, making it impossible to “beat” or outperform the market.

Asness joins Bethany and Luigi to discuss how the market has fundamentally changed due to new technologies and macroeconomic trends and how investment strategies must adapt, what these changes mean for long-term productivity and growth, how researchers and investors should think about emerging market factors like tariffs and artificial intelligence, and why he's not investing in TrumpCoin anytime soon.

Disclosure: In October 2024, Chicago Booth received a $60 million gift from Cliff Asness and John Liew to name its Master in Finance program.

Bonus: Revisit our recent episode with Eugene Fama, Why This Nobel Economist Thinks Bitcoin is Going to Zero

Avsnitt(218)

Ten Years Later Pt 3: The Next Crisis

Ten Years Later Pt 3: The Next Crisis

In our third and final episode on the 2008 financial crisis, Kate & Luigi look at recent volatility in the markets and try to predict the cause of the next financial crash with help from prominent economists Robert Shiller and Lawrence Summers.

11 Okt 201834min

Live taping of Capitalisn't in Chicago on October 8th

Live taping of Capitalisn't in Chicago on October 8th

Join us for a live taping of Capitalisn't on October 8 at the Union League Club in Chicago! Author Yascha Mounk will discuss his latest book, The People vs. Democracy, with co-hosts Luigi Zingales and Kate Waldock. Click here for details and free tickets! https://www.eventbrite.com/e/the-people-vs-democracy-with-yascha-mounk-katherine-waldock-and-luigi-zingales-tickets-49992656381

3 Okt 201829s

Ten Years Later Pt 2: The Aftermath

Ten Years Later Pt 2: The Aftermath

The second in a 3-part series on the 2008 financial crisis. In the weeks after the crash Luigi remembers petitioning the government for a better bank bailout. Looking back, he and Kate review everything from TARP to Dodd-Frank to see how we averted a worse recession. But did some CEOs get away with fraud?

27 Sep 201831min

Ten Years Later Pt 1: The Build-Up

Ten Years Later Pt 1: The Build-Up

The first in a 3-part series on the 2008 financial crisis. Kate tells Luigi about being an intern at Lehman Brothers when it collapsed and then we debate the causes including subprime mortgages, investor fraud and an ill-advised speech from former President George W. Bush.

13 Sep 201844min

Sex, Power and the Ivory Tower

Sex, Power and the Ivory Tower

Economists experience their first major #MeToo moment. Kate and Luigi explore the larger implications of a recent case involving a Columbia University professor who was found liable for retaliation against a female junior faculty member.

31 Aug 201829min

Antitrust Pt 3: The Europeans

Antitrust Pt 3: The Europeans

Our third and final episode on antitrust law looks at the E.U.'s recent $5 billion fine against Google. Kate and Luigi hear about double-sided markets from Nobel-winning economist Jean Tirole and explore the E.U. vs. U.S. approach to antitrust enforcement.

16 Aug 201832min

Antitrust Pt 2: The Populists

Antitrust Pt 2: The Populists

The second in a special 3-part series on antitrust law. Kate and Luigi talk with Lina Khan, author of the article “Amazon’s Antitrust Paradox,” and a member of the New Brandeis Movement, which believes that antitrust enforcement should be more broadly applied and not just rely on consumer welfare.

2 Aug 201829min

Antitrust Pt 1: The Establishment

Antitrust Pt 1: The Establishment

The first in a special 3-part series on antitrust law. In the wake of the approved merger between giants AT&T and Time Warner, Kate and Luigi talk with a leading expert, Carl Shapiro, about the evolving concept of consumer welfare and whether antitrust law needs to change with the times.

19 Juli 201828min

Populärt inom Business & ekonomi

framgangspodden
varvet
badfluence
uppgang-och-fall
rss-borsens-finest
svd-ledarredaktionen
avanzapodden
lastbilspodden
rikatillsammans-om-privatekonomi-rikedom-i-livet
fill-or-kill
rss-dagen-med-di
rss-kort-lang-analyspodden-fran-di
affarsvarlden
borsmorgon
dynastin
kapitalet-en-podd-om-ekonomi
tabberaset
montrosepodden
borslunch-2
rss-inga-dumma-fragor-om-pengar