According to Paul Woolley, senior fellow at the London School of Economics and Political Science, the idea that efficient markets reflect fair values has been discredited by capital markets’ past booms and crashes. In a 2009 opinion piece written with Dimitri Vayanos, Woolley argued that “the efficient market hypothesis has beguiled policymakers into believing that market prices could be trusted and that bubbles either did not exist, were positively beneficial for growth, or could not be spotted.”
At the Sixth Annual CFA Institute European Investment Conference, Woolley will be discussing the fallibility of efficient markets theory, sharing his new theory incorporating delegation and agency into financial models. Woolley introduces himself and his topic in the video below:
Register now to hear Woolley’s presentation in London, and follow this blog for more news and updates about the event.
Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.