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ECON 252: Financial Markets

Lecture 14 - Guest Lecture by Andrew Redleaf. Andrew Redleaf, a Yale graduate and manager of Whitebox Advisors, a hedge fund, discusses his experience with financial markets. He addresses one of the fundamental questions in finance - whether or not markets are efficient - and concludes that although they don't seem to be efficient, beating the market is very difficult. Mr. Redleaf discusses his thoughts about psychological barriers that make markets inefficient. He also comments on his beliefs regarding risk management and how people are compensated for mitigating risks, rather than for taking on risk as is often perceived. He ends by answering several questions from students. (from oyc.yale.edu)

Lecture 14 - Guest Lecture by Andrew Redleaf

Time Lecture Chapters
[00:00:00] 1. The Markets Are Not Efficient
[00:10:15] 2. Psychological Factors of Market Inefficiency
[00:25:57] 3. Rewards Are for Risk-Mitigating, Not Risk-Taking
[00:33:14] 4. Issues in the Current U.S. and Global Economies
[00:43:41] 5. Questions: Cash and Bonds as Default Investments
[01:04:35] 6. Speculating on Backdated Options

References
Lecture 14 - Guest Lecture by Andrew Redleaf
Instructor: Professor Robert J. Shiller. Transcript [html]. Audio [mp3]. Download Video [mov].

Go to the Course Home or watch other lectures:

Lecture 01 - Finance and Insurance as Powerful Forces in Our Economy and Society
Lecture 02 - The Universal Principle of Risk Management: Pooling and the Hedging of Risks
Lecture 03 - Technology and Invention in Finance
Lecture 04 - Portfolio Diversification and Supporting Financial Institutions (CAPM Model)
Lecture 05 - Insurance: The Archetypal Risk Management Institution
Lecture 06 - Efficient Markets vs. Excess Volatility
Lecture 07 - Behavioral Finance: The Role of Psychology
Lecture 08 - Human Foibles, Fraud, Manipulation, and Regulation
Lecture 09 - Guest Lecture by David Swensen
Lecture 10 - Debt Markets: Term Structure
Lecture 11 - Stocks
Lecture 12 - Real Estate Finance and its Vulnerability to Crisis
Lecture 13 - Banking: Successes and Failures
Lecture 14 - Guest Lecture by Andrew Redleaf
Lecture 15 - Guest Lecture by Carl Icahn
Lecture 16 - The Evolution and Perfection of Monetary Policy
Lecture 17 - Investment Banking and Secondary Markets
Lecture 18 - Professional Money Managers and Their Influence
Lecture 19 - Brokerage, ECNs, etc.
Lecture 20 - Guest Lecture by Stephen Schwarzman
Lecture 21 - Forwards and Futures
Lecture 22 - Stock Index, Oil and Other Futures Markets
Lecture 23 - Options Markets
Lecture 24 - Making It Work for Real People: The Democratization of Finance
Lecture 25 - Learning from and Responding to Financial Crisis I (Lawrence Summers)
Lecture 26 - Learning from and Responding to Financial Crisis II (Lawrence Summers)