Efficiency and Imperfect Information in Markets

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In trading strategies, the cost to borrow a stock reflects the market's estimate of how quickly a gap will close. Despite the perceived risk-free nature of some trades, high borrowing costs can erode profits until a catalyst resolves the gap. This underscores the notion that market efficiency coexists with imperfect information, extending to investors and even company management.

This week, Byrne Hobart and Erik Torenberg discuss a lesser-known Chamath Palihapitiya story, the index rebalancing trade as a postmodern part of finance, AI labs, crypto, and more. beehiiv: Head to https://beehiiv.com and use code "MOZ" for 20% off your first three months.

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TIMESTAMPS:

(00:00:00) About the Show

(00:00:20) Chamath, IAC, and Tinder

(00:16:20) Sponsors: Babbel | Beehiiv

(00:18:54) Chamath continued

(00:18:54) Twitter, Threads

(00:22:40) Twitter, Twitch

(00:24:12) Twitter, API

(00:28:37) Meme coins