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Ep. 877: Andrew Lo and Jon Gordon Interviews with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

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The Adaptive Market Hypothesis

Economists have this view of the world that is very much driven by the model of physicists who have developed. And it's terribly frustrating because we are fundamentally dealing with more difficult problems. The idea behind the adaptive market hypothesis is really to try to change that worldview. It's just taking the basic principles of evolution and applying them to financial market transactions and dynamics.

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