Fama vs Shiller: Are markets efficient or not?

This was a lot of fun – we had our friend Allison Schrager up at the Compound to talk about the Nobel Prize for Economics that was shared by Professors Robert Shiller and Eugene Fama for their lifetime contributions. The two men drastically disagree about what drives asset prices, with Shiller believing that emotions and irrational behavior explain almost everything while Fama believes that information is efficiently acted upon in real time as it is disseminated, and quickly reflected in market prices.

Join Michael, Barry, Allison and I in the discussion by commenting here, what you think?

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