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Podcast: Excess Returns
Episode: Bigger Extremes, Better Returns | Cliff Asness on the "Less Efficient Market Hypothesis"
Description: In this episode of Excess Returns, we sit down with AQR founder Cliff Asness for a fascinating discussion about market efficiency, behavioral finance, and the future of quantitative investing. In this wide-ranging conversation, we explore Cliff's recent paper "The Less Efficient Market Hypothesis" and discuss why markets might actually be becoming less efficient over time, despite advances in technology – a counterintuitive but compelling argument.
We dig into how social media and constant connectivity might be making markets more prone to extremes, the real impact of passive investing, and why periods of market irrationality might last longer than ever before. Cl...