The economics Nobel goes to: Eugene Fama, Lars Hansen and Robert Shiller
- Thread starter ogc163
- Start date
Meta Reign
I walk the streets like, ''say something, n!gga!''
Yea, the funny thing is that these guys have opposing views on how stocks are priced in. . . Which tells you, what? . . . Nothing.
A whole lot of nothing.
A whole lot of nothing.
godkiller
"We are the Fury"
The funny ting about this post is that you have no idea what you're talk about. It doesn't even matter if the two researchers have opposing views of stock market theory, the point is that both sides of the reseach add insight to the field and guide decision-makers. Just like there are different views on gambling methods and techniques doesn't mean all but one are invalid.
Broke Wave
The GOAT
Black smoke and cac jokes
Your daps are mine
Their theories actually complement each other since Fama's theory on behavior finance and Hansen's view on shock elasticity provides an explanation for the random occurrences in the short-term. They do disagree on which factor being the most prominent, but they definitely helped bring new insight to why stock prices/assets fluctuate like they do.
ogc163
Superstar
In a nutshell I always thought Fama's EMH theory was just an extension of a oversold idea of "rationality" that sounds great when articulated by Ivy league economists,especially when coupled with superfluous mathematics...but has a lot of historical evidence going against it imo. I'll link to the video later on where Samuelson found this supposedly enlightened book that started it all. I have a lot of respect for Shiller and I am definitely happy to see him win, I thought he deserved it last year.
ogc163
Superstar
start at the 11:00 mark to hear Samuelson @Broke Wave
Also a great post about Samuelson and Bachelier http://magic-maths-money.blogspot.co.uk/2013/08/oedipus-and-difficult-relationship.html
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Domingo Halliburton
Handmade in USA
economics is like that.
and Fama still denies there was an internet bubble. he thinks everything was priced correctly.
Domingo Halliburton
Handmade in USA
for fama though how many mutual funds and hedge funds beat the market? more don't then do.
PikaDaDon
Thunderbolt Them Suckers
I'm a bit hesitant to ask this question in fear of sounding like a retard. But we humans created the stock market. Don't you find it odd that we don't know how it works? For years we've formulated working theories like it's some sort of pandora's box. I always thought stock prices were determined by a complex mathematical equation with variables influenced by real world events.
Domingo Halliburton
Handmade in USA
you have millions of transactions happening with people and computers all over the world. it's not that we don't know how it works it's just impossible to predict the future.
stock prices are determined by how much money a company makes and then a multiple of that number.
example: apple makes $40.11 per share. they trade at a 12.37 multiple of that. so their stock price is 496.
people are willing to buy and sell at higher and lower multiples of a company then that.
edit: that's not all of it but that's the basic gist of it
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Broke Wave
The GOAT
Damn great stuff dog... I'm gonna really sit down and digest this shyt... I know how options work but I don't know WHY they work... that's what baffles me... like what is the options pricing model and how that is calculated... I'm gonna digest all this shyt when I get some rest... HL seems like its in prime form right now
ogc163
Superstar
Damn great stuff dog... I'm gonna really sit down and digest this shyt... I know how options work but I don't know WHY they work... that's what baffles me... like what is the options pricing model and how that is calculated... I'm gonna digest all this shyt when I get some rest... HL seems like its in prime form right now
Yeah that Doc is great, Samuelson doesn't get mentioned on here a lot even though dude is arguably the most important/influential economist of the last 50 years (even though I don't agree with him/his way of presenting econ)
Dusty Bake Activate
Fukk your corny debates
That's because if you notice, a certain troll-in-triplicate seems to have stopped posting much in this part of the forum.HL seems like its in prime form right now
Broke Wave
The GOAT
Important yes but influential... Friedman by literally half the distance to the goal automatic first down in terms of influence. Samuelson is a great non partisan truly academic and scientific economist that brings credibility to what a lot of times seems like utter psuedo-science (Sorry Peter Schiff stans).
He's pretending to be a Pats fan right now so I'm gonna let him cook. This nikka disappeared for like a week and every thread is about economics politics and philosophy instead of gays, "cac agenda, masculinity and Islam
