Welcome
to Step 2, where the evolution of modern finance
is discussed. Peter L. Bernstein provides the
inspiration for this step in his two books,
Capital Ideas, The Improbable Origins of Modern
Wall Street and Against the Gods, The Remarkable
Story of Risk. Both are recommended as supplemental
sources to this 12-Step Program.
Step 2 : Program Overview
The
tumultuous stock markets with their many
new instruments and novel approaches to
investing are a dramatic contrast from the
quiet academic libraries where the academics
created their revolution. Considering the
extent of the academics’ research,
we know that it deserves to be considered
a superior source of information for making
decisions concerning investment portfolios.
Random and efficient markets have been one
of the underlying themes throughout this
step.
