Eugene Fama Quotes

The proposition is that prices reflect all available information, which in simple terms means since prices reflect all available information, there's no way to beat the market.

I had always been interested in markets - specifically, the theory that in financial markets, goods will trade at a fair value only when everyone has access to the same information.

The markets are efficient over time.

I was convinced that the trading frequency measured a fundamental heartbeat of financial markets. Clearly it reflected the flow of information. It turns out also to be closely related to measures of liquidity.

Market value is irrelevant to intrinsic value. ... Unqualified judgment can at most claim to decide the market-value - a value that can be in inverse proportion to the intrinsic value.

The thing about markets, and I think the thing people don't understand about that, is markets are not kind, but they're very efficient. So when the marketplace determines an inefficiency in the system, it corrects that, and a market system that's left alone will reward good behavior and punish bad behavior.

Goods move in response to price differences from points of low to points of higher price, the movement tending to obliterate the price difference and come to rest.

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

So everybody has some information. The function of the markets is to aggregate that information, evaluate it, and get it incorporated into prices.

Part of my advantage is that my strength is economic forecasting, but that only works in free markets, when markets are smarter than people. That's how I started. I watched the stock market, how equities reacted to change in levels of economic activity, and I could understand how price signals worked and how to forecast them.

Markets are a good thing, and they are the best way of ensuring we have fairness.

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?

Markets are, in many settings, self-organizing and 'efficient' in terms of maximizing the welfare of both buyers and sellers.

To establish the right price for a stock, the market must have adequate information, but it by no means follows that is the market has this information it will thereupon establish the right price.

Fundamental analysis seeks to establish how underlying values are reflected in stock prices, whereas the theory of reflexivity shows how stock prices can influence underlying values

Market prices are always wrong.

I take the market-efficiency hypothesis to be the simple statement that security prices fully reflect all available information.

The generally accepted view is that markets are always right -- that is, market prices tend to discount future developments accurately even when it is unclear what those developments are. I start with the opposite view. I believe the market prices are always wrong in the sense that they present a biased view of the future.

No one has characterized market mechanisms better than Friedrich von Hayek.

Short-sellers perform a useful function in the market as conduits of negative information, and shorts often complain that they are discriminated against by regulators.

If you believe that markets operate in Alan Greenspan fashion, then you don't inquire into the details.

We should rely on the markets to move on their own.

Markets are self-regulating only because some brave investors are prepared to bet against the market trend.

Free markets work better when information is available.

The one thing about markets is that they do not give any advance notice. If they did, they would be arbitraged away.