Is the Efficient Markets Hypothesis Really Making Sense?

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i'm mostly an efficient market sky, but when i look at initial public offerings, i'm very baffled, because investment banks take such a huge cut. One version of efficient markets is that, in the absence of news, the price yesterday is going to be the price to day. Oi think there's some sort of continuity of prices, and the ipo is a huge discontinuity. Well, will get further data, but they're not obviously doing better.

Is Matt Levine a modern-day Horace? Like Matt, Horace has a preoccupation with wealth and the law. There’s a playful humor as he segues from topic to topic. An ability to read Latin. And many of Horace’s letters are about the length of a Bloomberg View column. QED, says Tyler.

So Matt, the Latin teacher turned lawyer turned investment banker turned finance writer, recently joined Tyler for a conversation on Horace and more, including cryptocurrencies, Buffy the Vampire Slayer, Nabakov, New York, Uber, financial regulation, market volatility, M&A, whether finance is nerdy, and why panic is central to the Matt Levine production function.

Read a full transcript enhanced with helpful links.

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