After costs, only the top 3% of managers produce a return that indicates they have sufficient skill to just cover their costs, which means that going forward, and despite extraordinary past returns, even the top performers are expected to be… — Eugene Fama Copy Share Image
I don't know what a credit bubble means. I don't even know what a bubble means. These words have become popular. I don't think they have any meaning. — 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 Image
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 Image
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 Image
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 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 some segment… — 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 that outlier… — Eugene Fama Copy Share Image
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 Image
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 Image
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 Image
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 Image
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 Image
