Efficient Markets

Efficient Markets

Robert Shiller, Eugene Fama, and Lars Peter Hansen shared the Nobel Prize for economics this past week “for their empirical analysis of asset prices that greatly improved our understanding of how financial markets work, when they seem to work well and when they seem to work otherwise.”

 As Ron Rimkus, CFA, and others have already pointed out, there’s some irony in the fact that Fama, the father of the efficient market hypothesis, does not recognize the existence of financial bubbles, while Shiller, author of Irrational Exuberance, has gained considerable fame for sounding alarm bells for overvalued markets.

Shiller, of course, is also well-known for his use of the cyclically adjusted P/E as a measure of stock market value. Investors who are cautious on US equities today are quick to point to the CAPE, or Shiller P/E, as clear evidence of an overvalued stock market. Market bulls prefer to look forward and the promise of strong earnings, and they've been richly rewarded for their optimism over the past two years. This divergence of opinion is what makes a market truly efficient.

Things Successful People Do On Weekends

Things Successful People Do On Weekends

 

• Weekends are an important time to unplug from the day-to-day and get a chance to think more deeply about my company and my industry

• “Even when I’m technically not working, I’m always processing in the background and thinking about the company. 

• Weekends are a great chance to reflect and be more introspective about bigger issues

• Always spends weekends with his family

• “Even if I’m on the road on a Friday and have to be back in that same city the following week, I always come home no matter what.”

• “A successful person is usually one who has achieved a measure of happiness and fulfillment in their work, family, and spiritual life

• “Most successful people need to feel a sense of accomplishment and are self-motivated to tackle the next challenge.”

• Roy Cohen, career coach and author of The Wall Street Professional’s Survival Guide, believes success is often defined in two ways: Achieving and exceeding financial milestones or achieving great satisfaction through one’s work.

• “From my perspective as a career coach, real meaningful success bridges the two–great prosperity combined with real joy and passion for your work.”