Critics of the conventional wisdom say all these efforts are a waste of time. Jeremy Grantham of Granthan Mayo Otterloo, A Boston-based fund Manager, and a long time critic of the efficient markets hypothesis, says academics will "patch theories until they finally collapse under the weight of all the patches".
The Investors dilemma...
While academics look for deeper models of markets that work, investors are left with a toolkit they have had since business school that suddenly seems not to work. It is unsettling. "I look at this process as being, in a sense, halfway done, says Mr Putnam of Grail. We've learnt a great deal but we haven't learnt how to integrate and synthesise that into a way to go forward. So the process, the paralysis, the trauma, has really taken hold right at the moment."
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