Efficient market theory maven Eugene Fama had characteristically pointed words for those working in the financial services sector. In a sold-out keynote speech to the CFA Society Chicago, Fama told portfolio managers their chosen vocations were “not full-time jobs,” saying financial advisors’ business model “doesn’t have longevity” and lamenting on the fact momentum factors exist in markets. However, when pressed with tough questions about the increasing role passive investing plays in diminishing free market efficiency, a hot topic of the day, the outspoken Nobel Laurette was noticeably subdued. [timeless variation=”investing”] History is all around Eugene Fama and Efficient Market Theory,…
Eugene Fama: Momentum Is A Big Embarrassment To Efficient Market Theory
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.
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