My guest today is Harry Markowitz, the third Nobel Prize winner to appear on this podcast. Markowitz is an American economist who received the 1989 John von Neumann Theory Prize and the 1990 Nobel Memorial Prize in Economic Sciences. Markowitz is a professor of finance at the Rady School of Management at the University of California, San Diego.

The topic is modern finance.

In this episode of Trend Following Radio we discuss:

• Justin Fox and “The Myth Of The Rational Market”
• Markowitz’s beginnings, and the Nobel Prize
• Markowitz’s 1952 paper
• How Markowitz felt about some of his prescriptions and ideas being interpreted into dogma
• Why Wall Street was not interested in Markowitz’s theories at one time
• Diversification for the right reason
• Markowitz’s new four-volume book
• Advice on maintaining mental acuity at an advanced age and sounding like you’re 35 when you’re 86 years young
• Markowitz’s attraction to the philosopher Hume
• If it was fifty years later, if Markowitz would be a quant running a hedge fund today
• Markowitz’s legacy
• On being comfortable vs. being rich
• The leveraged long-only hedge fund industry and being coaxed into putting your money into these institutions
• Long Term Capital Management and portfolio theory

Jump in!

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I’m MICHAEL COVEL, the host of TREND FOLLOWING RADIO, and I’m proud to have delivered 10+ million podcast listens since 2012. Investments, economics, psychology, politics, decision-making, human behavior, entrepreneurship and trend following are all passionately explored and debated on my show.

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