Talking War and Market Volatility With a Giant of Economics
The New York Times
Eugene F. Fama, the father of the efficient-markets theory, says the stock market can’t easily process “irrational” behavior. What will happen? “Who knows?” he says.
After watching financial markets gyrate from hour to hour as Russia attacked Ukraine, I was getting dizzy myself.
People in Ukraine were dying. The Russian president, Vladimir V. Putin, put his nuclear forces on alert, and Western sanctions were beginning to bite. One moment stocks were up, the next they were falling. Then they were up again.
On Wall Street and in other financial centers, plenty of analysts had elaborate explanations for what was going on, but if the markets were conveying a coherent message, I didn’t see it.
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