Nobel prize for economics winner Eugene Fama isn’t too happy about today’s financial market. He isn’t reassured at all and if there’s another recession, it’s going to be worldwide, he says.
This guy won his prize for his research into market prices and asset bubbles. You’d think he’s an active investor, because he’s an “expert” in the field, right? He’s a professor at the University of Chicago, for crying out loud! Wrong! He says that one cannot systematically outperform the market. (We already know this, but it’s nice to see this reconfirmed every single time.) You know where this guy invests his ‘stash? Right, in index funds such as the S&P500.
Ha! So why are there still overpaid fund managers working at Wall Street and in London and all those other fancy investment hubs? Beats me! We can beat those “magic makers” from the comfort of our own home…by choosing and buying index funds ourselves. Who needs these guys?!