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Behind The Markets Podcast: The 2022 Jacobs Levy Quantitative Finance Conference

Behind the Markets Podcast

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The Market Is More Sophisticated and More Institutional

The suggestion is that the a market is dominated by fairly unsophisticated retail investors, ok. And since they're trading on noise, their trades are not going to have long term effects on the value of the stocks. The bee market is much more sophisticated and much more institutional. Now, the part that i always found counter intuitive, as you think, well, momentum is a measure of market inefficiency, and we would expect the less sophisticated markets to then show more momentum.

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