Click here to access the second half of our Big Saturday Interview with Justin Fox, author of The Myth of the Rational Market: A History of Risk, Reward, and Delusion on Wall Street.
Here in the conclusion of our interview with Justin Fox, we talk about some of the people whose work first began to challenge the efficient market orthodoxy. From Shiller and Thaler to Warren Buffett and Ed Thorpe, Justin Fox explains how a new generation of researchers, investors and traders learned to understand, respect and even take advantage of the very real irrationality that occurs in financials markets all the time.
For example, when it comes to the world of trading, Justin Fox observes that “In reality, most of the people out of finance who’ve gone into professional money management have sort of taken the Thorpe route. They have said, ‘Okay, we know there are small inefficiencies, and maybe we can find ways to take advantage.'”
Editorial director of the Harvard Business Review Group, Justin Fox has a long tenure as a financial journalist. He worked as a columnist for Time magazine, authoring the Curious Capitalist Blog and, before that, spent more than ten years with Fortune magazine.
Read part 1 of our Big Saturday Interview, click here.