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The Devil Wears Nada

The global fashion industry is fickle by nature, pushing and then pulling trends to keep hapless consumers forever turning over their wardrobes. Much of the financial services industry works the same way. Fashion designers, manufacturers and media operate by telling consumers what’s in vogue this year, thus artificially creating demand where none previously existed. What […]

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Efficient Markets: The Practical View

The recent awarding of the Nobel Prize in economics to Professor Eugene Fama has sparked some criticism of his theory of efficient markets. Debate is a good thing, but it is always advisable to start with the right definitions. Fama’s ‘efficient markets hypothesis’ is a model of how markets behave. It was developed back in […]

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Simplicity and Sophistication

The Chinese philosopher Confucius once said that life is very simple, but we insist on making it complicated. You could say the same thing about investment. Complexity in investment often goes with a lack of transparency. The highly engineered and multi-layered financial derivatives that contributed to the global financial crisis five years ago are a […]

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Efficient Market Hypothesis

Professor Gene Fama, father of the Efficient Market Hypothesis explains to the FT’s James Mackintosh why EMH remains the best model to describe markets.

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