Slate Money
Money Talks: Can Math Really Crack the Stock Market?
May 14, 2024
Finance journalist Mary Childs discusses the controversial Fama-French model that guides investments. They question investing, markets, reality in finance mathematics, Fama-French data integrity, historical performance of value stocks, Dimensional Fund Advisors' strategies, statistical significance, existential nature of numbers, challenges in financial analysis, and generational shifts in societal values.
48:13
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Quick takeaways
- Stock prices are not as objective as they seem, revealing underlying complexities and uncertainties in the financial market.
- The construction and maintenance of financial data sets significantly impact investment decisions and academic research, emphasizing the importance of methodologies.
Deep dives
The Complexity of Stock Price Dependability
Stock prices are often viewed as objective truths, but beneath the surface lies a complexity that challenges this notion. Despite being easily accessible and seemingly factual, the reality is that there is a significant level of fuzziness, especially when considering aggregates of stocks. This fuzziness brings into question the reliability of stock prices and highlights the nuances and uncertainties present in the financial market.
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