The proposition is that prices reflect all available information, which in simple terms means since prices reflect all available information, there’s no way to beat the market. Eugene Fama Read Quote
With less regulation, I think you would see growth come back. Of course, there are situations where you need regulation. Antitrust regulation, for example, is a good idea because you want competition. But beyond that, it gets very difficult. Eugene Fama Read Quote
People don’t walk away from their homes unless they can’t make the payments. That’s an indication that we are in a recession. Eugene Fama Read Quote
The investors who generate big returns over five years, the guys they write books about, are supposed to keep winning, right? Well, they don’t. Eugene Fama Read Quote
In an efficient market, at any point in time, the actual price of a security will be a good estimate of its intrinsic value. Eugene Fama Read Quote
Tastes and behavior are important in economics. Nobody denies that. But the question is: How much of behavior is irrational, and how much of the irrational behavior really affects prices? It turns out that’s very difficult to answer. Eugene Fama Read Quote
State constitutions typically provide that the state first has to service its debt, then make it pension payments, and then pay for services. What we don’t know is whether that order will be enforced. And ultimately, the busted state is going to be looking to the federal government for a bailout. Think Greece, but on a much bigger scale. Eugene Fama Read Quote
People are always saying that prices are too high. When they turn out to be right, we anoint them. When they turn out to be wrong, we ignore them. They are typically right and wrong about half the time. Eugene Fama Read Quote
There’s quite a bit of evidence that even professionals don’t show any ability to pick stocks or to predict market rollbacks. Most of the people we identify as skilled based on returns have probably just been lucky. Eugene Fama Read Quote
