Few economists have had a greater influence on the financial markets than Eugene Fama. According to his Efficient Market Theory, competition among investors is so intense that all information and expectations are immediately and correctly priced in. Therefore, it’s impossible to beat the market in the long-term.
Never shy of making pointed statements, the Professor of Finance at the University of Chicago doubts the power of the central banks. «The business of central banks is like pornography: In essence, it’s just entertainment and it doesn’t have any real effects», he says. In contrast, he warns that investors could begin to question the credit worthiness of governments because of the high national debt levels.