Oh Behave!

In a past issue, I wrote about how a strategy based on principled risk management was being criticized. While I have found that tribal rejection of the placement of meaningful hedging approaches is likely in general, I’ve also felt that the most vigorous lack of acceptance came from my friends who are proponents of market efficiency, as promoted by one of my heroes, Nobel laureate Eugene Fama. Here’s a quote taken directly from Wikipedia regarding the Shiller Cyclically Adjusted...