The 1970s were a pretty eventful time in markets. There was high inflation, the end of the gold standard, and a stock market crash. There was also a bunch of ideas coming out of the University of Chicago that would go on to be famous and highly influential for investors. Perhaps the most prominent is the Efficient Market Hypothesis, posited by Nobel Laureate Eugene Fama, which says that markets are right and it's useless for investors to try to outguess them. Fama later teamed up with David Booth, the founder of Dimensional Fund Advisors, and has been a longtime collaborator with the firm, which now has $777 billion under management. Today, they're releasing a documentary directed by Errol Morris and called "Tune Out the Noise," which chronicles this important time. We speak to both of these investment legends about the development of their theories, how they put them into practice, subsequent criticism, and what comes next.

Read more:
Wall Street Math Wizards Are Decoding Private-Market Returns
Upstarts Challenge a Foundation of Modern Investing
Cliff Asness Says Markets Are Less Efficient — And Social Media May Be to Blame 

Odd Lots is coming to Washington, DC! Get your tickets for our Jones Act debate here.

 

The 1970s were a pretty eventful time in markets. There was high inflation, the end of the gold standard, and a stock market crash. There was also a bunch of ideas coming out of the University of Chicago that would go on to be famous and highly influential for investors. Perhaps the most prominent is the Efficient Market Hypothesis, posited by Nobel Laureate Eugene Fama, which says that markets are right and it's useless for investors to try to outguess them. Fama later teamed up with David Booth, the founder of Dimensional Fund Advisors, and has been a longtime collaborator with the firm, which now has $777 billion under management. Today, they're releasing a documentary directed by Errol Morris and called "<a href="https://www.youtube.com/watch?v=T98825bzcKw" data-prosemirror-content-type="mark" data-prosemirror-mark-name="link">Tune Out the Noise</a>," which chronicles this important time. We speak to both of these investment legends about the development of their theories, how they put them into practice, subsequent criticism, and what comes next.
Read more: <a href="https://www.bloomberg.com/news/features/2024-11-10/wall-street-math-wizards-are-decoding-private-market-returns?utm_medium=referral&amp;utm_source=podcast&amp;utm_campaign=odd_lots&amp;utm_content=article" data-prosemirror-content-type="mark" data-prosemirror-mark-name="link">Wall Street Math Wizards Are Decoding Private-Market Returns</a> <a href="https://www.bloomberg.com/news/features/2024-03-11/a-fight-over-factor-investing-tests-a-pillar-of-modern-finance?utm_medium=referral&amp;utm_source=podcast&amp;utm_campaign=odd_lots&amp;utm_content=article" data-prosemirror-content-type="mark" data-prosemirror-mark-name="link">Upstarts Challenge a Foundation of Modern Investing</a> <a href="https://www.bloomberg.com/news/articles/2024-09-03/cliff-asness-is-old-man-whinging-as-markets-get-less-efficient?utm_medium=referral&amp;utm_source=podcast&amp;utm_campaign=odd_lots&amp;utm_content=article" data-prosemirror-content-type="mark" data-prosemirror-mark-name="link">Cliff Asness Says Markets Are Less Efficient &mdash; And Social Media May Be to Blame </a>
Odd Lots is coming to Washington, DC! <a href="https://events.bloomberglive.com/oddlotsliveDC">Get your tickets for our Jones Act debate here.</a>
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Bloomberg's Joe Weisenthal and Tracy Alloway explore the most interesting topics in finance, markets and economics. Join the conversation every Monday and Thursday.

Bloomberg's Joe Weisenthal and Tracy Alloway explore the most interesting topics in finance, markets and economics. Join the conversation every Monday and Thursday.

Bloomberg's Joe Weisenthal and Tracy Alloway analyze the weird patterns, the complex issues and the newest market crazes. Join the conversation every Tuesday and Thursday for interviews with the most interesting minds in finance, economics and markets.

Odd Lots

On Bloomberg’s Odd Lots podcast Joe Weisenthal and Tracy Alloway explore the most interesting topics in finance, markets, and economics. Join the conversation every Monday and Thursday. 

On Bloomberg’s Odd Lots podcast Joe Weisenthal and Tracy Alloway explore the most interesting topics in finance, markets, and economics. Join the conversation every Monday and Thursday.

Eugene Fama and David Booth on the Birth of Modern Finance

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/d74206e7-6f8a-4adf-b557-b2970138a6e4/transcript

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