Benoit Mandelbrot Critiques the “Efficient Markets” Hypothesis
In a fascinating in-depth interview with John Authers, 85-year old mathematician Benoit Mandelbrot discusses his now 40-year old groundbreaking critique of the “efficient markets” hypothesis and why new theories on price movement discontinuities are needed after the credit crunch. [Hat Tip to FinanceProfessor.com]
Editor’s Note: there are two parts to this video so after watching the first wait for the second to automatically load and begin … [ Read more ]
Content: Multimedia Content | Author: Benoit B. Mandelbrot | Source: Financial Times | Subjects: Economics, Finance
How Fractals Can Explain What’s Wrong with Wall Street
The geometry that describes the shape of coastlines and the patterns of galaxies also elucidates how stock prices soar and plummet. [Hat tip to FinanceProfessor.com]
Content: Article | Author: Benoit B. Mandelbrot | Source: Scientific American | Subject: Finance