James O'Shaughnessy Quotes

It seems to me that at least as far as the financial markets are concerned, there is increasing evidence against rational expectations, even at the macro level.

Economists think about what people ought to do. Psychologists watch what they actually do.

I don't entirely reject the idea of efficient markets. It needs updating.

Personally, I don't see old economics and behavioural economics as opposed. It is useful to assume people are rational as a good approximation to their long term behaviour, but it would be unwise not to think how in practice their behaviour may deviate from that simplifying assumption.

Why did God create economists? To make weather forecasters look good.

Economists discount any factors that would not influence the thinking of a rational person.

Market prices are always wrong.

Economics is uncertain because its fundamental subject matter is not money but human action. That's why economics is not the dismal science, it's no science at all.

We do not always act the way economists think we should, mainly because we're both less selfish and less rational than economists think we are. Economists are being indoctrinated into a cardboard version of human nature, which they hold true to such a degree that their own behavior has begun to resemble it.

Economists, firstly, regard only one part of man's nature, and treat him simply as a money-making animal; secondly, they disregard the influence of custom, and only take account of competition.

Economic theory does not work with human beings. We are far too messy.

Economics is not about goods and services; it is about human choice and action.

Looking at the stock market to understand the economy is like studying a manic depressive in order to understand human nature.

A colleague of mine in the economics department once said, “when the price of bullshit is zero, demand is inelastic.” A corollary of this principle is that when the price of bullshit is zero, the supply of bullshit is infinite, especially when there are tangible gains for bullshitters.

The sad truth is that many behavioral economists know very little about psychology.

I practice what has come to be called behavioral economics.

Tastes and behavior are important in economics. Nobody denies that. But the question is: How much of behavior is irrational, and how much of the irrational behavior really affects prices? It turns out that's very difficult to answer.

High-frequency traders are firms all around the world. They're massive investments.

I love Richard Thaler's 'Quasi Rational Economics.' A collection of some of his most interesting and inventive essays, the real foundation of behavioral economics.

The lesson of my field, behavioral economics, is that we need to understand the ways in which we differ from the rational human assumed in standard economic theory.

Market timing doesn't work. If all the bubbles and all this mispricing really exist, how come so few people see it before it turns out that way?

The left-brainer and the economist in me says watch what people do, not what they say.

Economists often get the market wrong.

Often times, when you find an edge, it's not for very long. People figure it out, so you have to try and exploit it, quickly, while you can.

It is the business of economists, not to tell us what to do, but show why what we are doing anyway is in accord with proper principles.