Stansberry Research
The 'Father of Modern Finance' Talks Today's Economy
🔔 Gain an instant edge over Wall Street: https://stansberrydigest.com/?v=TW65Ze725xU
On this week's Stansberry Investor Hour, Dan and Corey welcome Eugene Fama to the show. Eugene is a Nobel Prize-winning economist and ...widely recognized as the "father of modern finance."
Eugene kicks things off by talking a bit about his efficient-market hypothesis, whether he believes it's still relevant in today's economy, and how passive investing plays a role in all this. He also discusses what it's like winning a Nobel Prize, the impact of his five-factor model on investing and the rise of factor-based funds, rationality versus irrationality, and the importance of luck in markets.
Next, Eugene argues against a New York Times article claiming that a PhD in economics won't bring affluence or prestige anymore, laments the lack of new breakthroughs in financial theory/modeling, and comments on the modern competitive environment in economics that didn't exist 60 years ago. Things then take a more personal turn, and Eugene talks about his how he discovered his love of economics and what he wanted to focus his research on.
Finally, Eugene shares what it was like in Chicago back when the city was the epicenter of financial research, including his experience working with some other notable economists. After that, he gives his opinion on market bubbles. Speaking about the dot-com era, he says that the total value created from the industry is a big part of international wealth today, so it can't be considered a mistake. And he closes things out with a conversation about uncertainty in making predictions.
0:00 Are markets still efficient?; passive investing; Nobel Prize; factor funds
16:39 Economics degrees; lack of new financial theory; modern competition
30:46 Market bubbles; the dot-com era; uncertainty in investing[+] Show More
On this week's Stansberry Investor Hour, Dan and Corey welcome Eugene Fama to the show. Eugene is a Nobel Prize-winning economist and ...widely recognized as the "father of modern finance."
Eugene kicks things off by talking a bit about his efficient-market hypothesis, whether he believes it's still relevant in today's economy, and how passive investing plays a role in all this. He also discusses what it's like winning a Nobel Prize, the impact of his five-factor model on investing and the rise of factor-based funds, rationality versus irrationality, and the importance of luck in markets.
Next, Eugene argues against a New York Times article claiming that a PhD in economics won't bring affluence or prestige anymore, laments the lack of new breakthroughs in financial theory/modeling, and comments on the modern competitive environment in economics that didn't exist 60 years ago. Things then take a more personal turn, and Eugene talks about his how he discovered his love of economics and what he wanted to focus his research on.
Finally, Eugene shares what it was like in Chicago back when the city was the epicenter of financial research, including his experience working with some other notable economists. After that, he gives his opinion on market bubbles. Speaking about the dot-com era, he says that the total value created from the industry is a big part of international wealth today, so it can't be considered a mistake. And he closes things out with a conversation about uncertainty in making predictions.
0:00 Are markets still efficient?; passive investing; Nobel Prize; factor funds
16:39 Economics degrees; lack of new financial theory; modern competition
30:46 Market bubbles; the dot-com era; uncertainty in investing[+] Show More
The 'Father of Modern Finance' Talks Today's Economy
Wealth Ladder Unlock Your Financial Potential! Levels Explained
Wealth Ladder From Level 1 to 6, Watch Your Behavior Change!
A Candid Conversation With MarketWise's New CEO
The 0 01% Rule How The Rich Spend Their Money
STOP! Don't Put ALL Your Money in Crypto! Warning
This Simple Pattern Nailed the COVID Crash Low—Here’s What It Says Now
NVIDIA & Index Funds Smart Investing for Explosive Wealth!
Money vs Happiness Why We Focus on What's Easy to Measure
Money vs Happiness Why We Focus on the Wrong Metrics
Why Eisenhower Built the Interstate
Money CAN'T Buy Happiness Shocking Truth!
We Love our Cars
Transaction Costs in Car Buying
Transaction Costs are Friction