For those of us who believe in a statistical approach to the market, Random Walk and more specifically, the Efficient Market Theory act as the foundation for our approach. For those of you who want to learn the beginnings of Efficient Market Theory check out the what “father of modern finance”, American economist and Nobel laureate in Economics, Eugene Fama has to say.
Fast forward to the around the 6:30 minute mark to hear what Gene has to say. An interesting listen for all the finance and investment geeks out there. Enjoy!