Comment by bofadeez
19 hours ago
Maybe not "collapse" in a the sense of going to zero but if there was no profit to trading, then the quant trading industry would not exist, trading profits would collapse.
Meanwhile Two Sigma is hiring alpha quants to be AI research scientists at $250k starting salary + bonuses.
Even if we're just talking about the HFT/sell-side, there clearly exist various anomalous inefficiencies that can be exploited.
Fama's guy doesn't agree either [1]
https://www.ft.com/content/813b3d76-6ef1-427d-a2e0-76540f58a...
As I said, if we woke up this morning and prices were magically efficient in an idealised sense, at most a few quants would go home and retire early, and tomorrow we'd be back at the level (in-) efficiency that allows people to be market makers.