Here’s my variation on the classic EMH joke:

Two Economics professors are walking back to their offices after giving a lecture on the Random Walk of stock prices.

"Look!" says one of the academics, "There’s $1.7 billion dollars!"

"Nonsense!" says the other. "The market efficiency hypothesis states that security prices fully reflect all available information. That money is impossible."

"Schmucks!" laughs Jim Simmons of Renaissance Technologies. He picks up the money and goes back to his office.


You may now return to your previously scheduled belief system.

Category: Apprenticed Investor, Hedge Funds, Investing, Markets, Psychology, Quantitative

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

5 Responses to “Efficient Market/Random Walk Joke”

  1. David Merkel says:

    Thanks for the link, Barry. Mr. Simons should make the EMH academics distinctly uncomfortable… a very bright guy who has hired some of the best talent out there.

  2. TDL says:

    This link is going straight to one of my banking buddies!

    TDL

  3. For each of the few traders or other “professional” money managers that exist who can overcome the efficiencies of the market, there will at least 1,000 who will make the attempt to do just the same. After all, it is in our human nature to do so. That’s why Golf is so popular…

  4. halbhh says:

    heh heh….I guess the “random walk” part was the professors walking by the money, lol

  5. Ryan says:

    Random Walk/EMH is academic BS. 99% of professors seem to believe and 99% of people who work in the real markets do not.