Me: What?
Abendroth:. The idea behind the the random walk theory is that everything we know about a stock is reflected in today's price ... so the only thing that can change that price is new information which we don't yet know. Stocks will randomly move - or walk - up or down, by a lot or by a little, based only on that new information.
Me: So you're saying that even conspiracy theories are as effective as financial analysis?
Abendroth: No. I'm saying that in finance, they are all conspiracy theories. Even the random walk theory.
After a long pause.
Me: So you're saying that the random walk theory could be true if it is false but must be false if it is true?
Abendroth: Yes.
Me: Because the random walk theory suggests that any theories about the stock market - including the random walk theory - are nonsensical?
Abendroth: Yes.
Me: That sort of makes sense.
Abendroth: But mostly doesn't.
Me: Did Lewis Carrol manage an investment fund?
Abendroth: Why do you think the Rabbit was so smartly dressed? He was the fund manager.
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