EconomicsFinancial Markets

Nobel Prize in Economics Awarded to Eugene Fama

By October 16, 2013 No Comments

At Asset Science our philosophy has  always been based on a rigorous, scientific approach to investment that is based on evidence. Much of that evidence has come from a University of Chicago academic, Eugene Fama.

Among his many accomplishments was the invention of the “efficient market hypothesis” (EMH) which essentially says all known information about a stock or bond is already factored into its price. The theory is far from perfect, but it has major implications for how the average person should invest in the stock market – a topic I’ll go into some detail in another post.

Professor Fama’s ground-breaking contributions to modern finance have been recognized by the Royal Swedish Academy of Sciences who have awarded him the Nobel Prize in Economics. Congratulations to Eugene for this well-deserved recognition.

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