” People are always saying that prices are too high. When they turn out to be right, we anoint them. When they turn out to be wrong, we ignore them. They are typically right and wrong about half the time. “


” People don’t walk away from their homes unless they can’t make the payments. That’s an indication that we are in a recession. “


” I’m an extreme libertarian, but I realize we’re in a democracy, and in a democracy, people can have views of all stripes, and there’s no reason to argue about it. “


” There’s quite a bit of evidence that even professionals don’t show any ability to pick stocks or to predict market rollbacks. Most of the people we identify as skilled based on returns have probably just been lucky. “


” I think bubbles are things people see with 20/20 hindsight. If you look at any particular period where prices go up and then they go down, you will always find people who predicted that they would go down. Those are the people you pay attention to. “


” Market timing doesn’t work. If all the bubbles and all this mispricing really exist, how come so few people see it before it turns out that way? “


” People think rationally that the world really is more risky. Imagine in 2008 that investors thought there was a 10% chance we’d have a depression. That would partly justify the drop in prices. “


” The problem that people don’t understand is that active managers, almost by definition, have to be poorly diversified. Otherwise, they’re not really active. They have to make bets. What that means is there’s a huge dispersion of outcomes that are totally consistent with just chance. There’s no skill involved it. It’s just good luck or bad luck. “



All 8 Eugene Fama Quotes about People in picture


People are always saying that prices are too high. When they turn out to be right, we anoint them. When they turn out to be wrong, we ignore them. They are typically right and wrong about half the time.
People don


I
There
I think bubbles are things people see with 20/20 hindsight. If you look at any particular period where prices go up and then they go down, you will always find people who predicted that they would go down. Those are the people you pay attention to.
Market timing doesn
People think rationally that the world really is more risky. Imagine in 2008 that investors thought there was a 10% chance we
The problem that people don
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