In a video interview with The Economist, Justin Fox talks about his latest book The Myth of the Rational Market. Among other topics, Mr. Fox discusses the efficient market hypothesis, index funds, financial market bubbles, value at risk models, and the assumption that prices move in a normal distribution. We previously excerpted sections of Roger Lowenstein’s review of Mr. Fox’s book and plan to write a review for The Rational Walk at some point later this year. Mr. Fox is the business and economics columnist for Time Magazine. Read this article for more details and to view the video.
Roger Lowenstein’s work has been discussed in some detail on The Rational Walk over the past few months. Lowenstein is the author of Buffett: The Making of an American Capitalist which was reviewed last month. More recently, he wrote While America Aged which covers several case studies related to the pension crisis in the United States (this book was reviewed in February). Given Lowenstein’s background, I was interested to read his review this morning in The Washington Post of an upcoming book by Justin Fox covering the unavoidable implications recent history has on various theories of “market efficiency”. Read this article for further details.