Often we hear say someone ask us the question, “Do you play the market?” The answer should be a resounding no, as the market is not a game. In fact, it’s quite scientific. A trio of Nobel Prize winning economists each have created a model that better helps us to understand the science behind the market.
This 8-and-a-half minute video features interviews with various executives from DFA and Vanguard and reviews the groundbreaking academic research on modern portfolio theory spearheaded by Harry Markowitz, William F. Sharpe and Eugene Fama. The screen shot above shows Eugene Fama on the left and DFA board member Ken French on the right.
It covers such essential concepts as Efficient Market Theory, the Capital Asset Pricing Model (CAPM), the concept of risk and beta, and the Fama and French’s famous 3-factor model and an enhanced 5-factor model.
After watching the video if you want to learn more, download the free guide, 12 Essential Ideas For Building Wealth.
“If you are serious about investing and building wealth the video documentary series ‘How To Win the Loser’s Game’ is a must-see. It’s excellent.” — Paul Philip, (CFP, CLU) Financial Wealth Builders Securities