There's quite a bit of evidence that even professionals don't show any ability to pick stocks or to predict market rollbacks. Most… — Eugene Fama Copy Share Image
People think rationally that the world really is more risky. Imagine in 2008 that investors thought there was a 10% chance we'd… — Eugene Fama Copy Share Image
Active investment is a zero-sum game. Passive managers don't play the game. They buy something resembling the market as a whole, or… — Eugene Fama Copy Share Image
Debates go on to this day about what caused the Great Depression. Economics is not very good at explaining swings in economic… — Eugene Fama Copy Share Image
Market timing doesn't work. If all the bubbles and all this mispricing really exist, how come so few people see it before… — Eugene Fama Copy Share Image
In an efficient market at any point in time the actual price of a security will be a good estimate of its… — Eugene Fama Copy Share Image
People are always saying that prices are too high. When they turn out to be right, we anoint them. When they turn… — Eugene Fama Copy Share Image
The proposition is that prices reflect all available information, which in simple terms means since prices reflect all available information, there's no… — Eugene Fama Copy Share Image
The distribution of the market is fat-tailed relative to the normal distribution... For passive investors, none of this matters, beyond being aware… — Eugene Fama Copy Share Image
Markets are efficient, but there are different dimensions of risk and those lead to different dimensions of expected returns. That's what people… — Eugene Fama Copy Share Image
I can't figure out why anyone invests in active management, so asking me about hedge funds is just an extreme version of… — Eugene Fama Copy Share Image
After costs, only the top 3% of managers produce a return that indicates they have sufficient skill to just cover their costs,… — Eugene Fama Copy Share Image
I think bubbles are things people see with 20/20 hindsight. If you look at any particular period where prices go up and… — Eugene Fama Copy Share Image
All the central banks are doing is substituting one form of debt with another form of debt. They're issuing short term debt… — Eugene Fama Copy Share Image
I don't think the Federal Reserve has any role in how high rates are right now. I don't understand why everyone is… — Eugene Fama Copy Share Image
The efficient market theory is one of the better models in the sense that it can be taken as true for every… — Eugene Fama Copy Share Image
People would be a lot more skeptical if they understood that there is an incredible amount of chance in the results that… — Eugene Fama Copy Share Image
The investors who generate big returns over five years, the guys they write books about, are supposed to keep winning, right? Well,… — Eugene Fama Copy Share Image
Economies typically do not function well in hyperinflation. The real value of government debt might disappear, but the economy is likely to… — Eugene Fama Copy Share Image
I don't even know what that means. People who get credit have to get it from somewhere. Does a credit bubble mean that people… — Eugene Fama Copy Share
After taking risk into account, do more managers than you’d see by chance outperform with persistence? Virtually every economist who studied this question answers… — Eugene Fama Copy Share
Debates go on to this day about what caused the Great Depression. Economics is not very good at explaining swings in economic activity. — Eugene Fama Copy Share
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 Copy Share
Active investment is a zero-sum game. Passive managers don't play the game. They buy something resembling the market as a whole, or some segment… — Eugene Fama Copy Share
The distribution of the market is fat-tailed relative to the normal distribution... For passive investors, none of this matters, beyond being aware that outlier… — Eugene Fama Copy Share
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… — Eugene Fama Copy Share
State constitutions typically provide that the state first has to service its debt, then make it pension payments, and then pay for services. What… — Eugene Fama Copy Share
The efficient market theory is one of the better models in the sense that it can be taken as true for every purpose I… — Eugene Fama Copy Share
People are always saying that prices are too high. When they turn out to be right, we anoint them. When they turn out to… — Eugene Fama Copy Share
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 Copy Share
In my junior year in college, I was getting kind of tired of French. So, I took an economics course, and I loved it.… — Eugene Fama Copy Share
All the central banks are doing is substituting one form of debt with another form of debt. They're issuing short term debt and using… — Eugene Fama Copy Share
Tastes and behavior are important in economics. Nobody denies that. But the question is: How much of behavior is irrational, and how much of… — Eugene Fama Copy Share
