Jay Hancock of the Baltimore Sun pulls out the money quote from our commentary yesterday: Finally, the secret of stock markets, revealed:

Barry Ritholtz has the answer to the question that Nobelists, professors, economists and soothsayers have been asking for for 300 years. What drives the stock market?

“Such is the result of giving two million primates lots of money and keyboards and a belief they can make a living based on numbers and letters moving around — on a screen, in a futures pit, on an exchange floor, or even under a buttonwood tree.”

Thanks for the kind words, Jay!

Category: Media

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.

8 Responses to “Secret of Stock Markets, Revealed”

  1. callistenes says:

    Way to go monkey boy. btw the monkey boy post was also one of your best.

  2. VennData says:

    And a few of those typing monkeys will bang out the financial-equivalent of a novel: out performance.

  3. ironman says:

    And all this time, I thought it was coffee that was driving the stock market’s traders….

  4. d says:

    I have the perspctive have having experience in two industries; 1) as an engineer and operations manager in an industry that actually made something that the economy demanded and 2) a securities analyst for a large hedge fund. After a decade and half of enjoying the real economy job but becoming bored (same thing day in day out) I ventured back to grad school got my masters in finance to pursue a vocation that had always interested me, industry financial analysis and investing. I enjoyed learning the “science” behind making investment decisions and still believe in the fundamental aspects to investing.

    However, in my first job, as a securities analyst at a large hedge fund, while I was probably a little green (and naive) with respect to knowing the financial ways to the world, I gained a temendous amount of perspective and earned a great living beyond my wildest dreams (for a few years until I was “layed off” = fired in a firmwide downsizing). What I did learn from experience was that there are tremendous number of very entitled, narcissistic people who work in the finance industry. Many of these people truly believe that finance is the end in and of itself and that they should be the master of command while it should be the means to an end. The foul and cruel comments made and beliefs about those people who a) work in a truly producing enterprise and b) and are paid significantly, significantly, significantly less in their occupations while over the long-haul produce more economically usable product than the financiers, is truly appalling. There is so much wrong with this over-capacity vocation that it is hard to elaborate upon.

    To hear the ass hats on CNBC pump their books knowing that they are making so much more money (and beleiving they are more valuable to humanity than) than say someone who saves lives or has their life on the line on a daily basis makes me want to vomit. All of this talk about “we need to pay these dickheads so much otherwise we would lose all of this talent” is such a line of self-perpetuating self-promotional bullshit. Yeah, you guys have done a real smash up job and gosh its hard to live on what you make. Try a little real-life like most people experience. What makes me even more annoyed is that I am now one of those keyboard pounding monkeys trying to make a living by trading.

    I don’t think I provide human kind any value other than to provide some income (if I don’t get run over by some silver-spoon fed wall street analyst/firm) to provide for my family. While it would feel good to go back to the real economy world, I am truly stuck (you can’t just go back to engineering – if you tried to get hired they would not believe you would stay) trading my book to attempt to out-Ponzi the next guy.

  5. catman says:

    d – “otherwise we would lose all this talent” – there must be a piece of granite somewhere for that one. I laugh til it hurts, and for a lot of people it does, whenever I hear it.

  6. Pat G. says:

    Well said, BR and I agree totally. It’s all make believe.

  7. DiggidyDan says:

    Apes wearing pants. . . with the Dunning Krueger effect in full effect. . . and yes, it’s apes, surely. Thank you Charles of th Beagle.

  8. jay.hancock@baltsun.com says:

    Barry: Thanks for the shoutback. Your analysis is brilliant and groundbreaking. Efficient markets? Rational expectations? Pfft. It’s primates and keyboard and somebody else’s money. Now you need to put it in algebra and submit it to the Journal of Financial Economics.