"Tune Out The Noise," a groundbreaking documentary directed by Academy Award-winning documentarian Errol Morris, delves into the intricate workings of financial markets. The film reveals how these mechanisms differ significantly from public intuition or perception, marking a pivotal moment for passive investing strategies. Premiering in New York, the documentary has already started making waves in the financial world.
The film chronicles the rise of academic finance throughout the mid-twentieth century and its profound impact on the investment landscape. It highlights the contributions of renowned academics whose work steered the industry away from traditional stock-picking and towards more passive, low-cost investment strategies.
Included in the film are interviews with some of the most influential figures in financial academia, such as Myron Scholes, Robert Merton, Eugene Fama, and Kenneth French. These interviews provide invaluable insights into the evolution of financial theories that have shaped today's market practices.
David Booth, chairman of Dimensional Fund Advisors, also features prominently in the documentary. Booth's firm now manages over $700 billion in assets, largely due to the passive investing boom that academics featured in the film helped to fuel.
"People are getting a much better deal now than when I started in 1971." – David Booth
The documentary not only explores these academic influences but also examines the creation and growth of Dimensional Fund Advisors. It underscores how the firm has become a testament to the efficacy of academic-driven investment strategies.
Director Errol Morris, known for his penchant for storytelling, successfully captures the essence of market dynamics by allowing these financial luminaries to narrate their experiences and insights.
"One of the reasons I became a filmmaker, or a documentary filmmaker, whatever you want to call it, is I like to hear people telling stories. And this is filled with it." – Errol Morris
The film aims to enlighten audiences about the often misunderstood nature of markets. It contrasts popular perceptions with the realities uncovered by decades of academic research.
"It's really about how markets work and how different that is from people's intuition or perception." – David Booth
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