Is believing in efficient markets a bit like believing in Santa Clause? One could argue that the outrage and confusion surrounding the recent debacle with Robinhood and GameStop is the result of the opening of investors’ eyes to the fact that there is no such thing as Santa Clause. In this interview with Max Wiethe, Matt Rowe of Headwaters Volatility makes the case that markets are inefficient and have been since long before this recent and obvious reminder. On the other hand, Rowe highlights that the new participants like Robinhood’s users and “new” structures like SPACs should not be ignored, especially in their impact on volatility. Rowe and Wiethe will also discuss why shorts and the relative value trades often including shorts are so difficult to manage even without concerted short squeezes.