What explains the volatility in financial markets?

Do stock prices reflect all publicly available information? Are they entirely a reflection of the fundamental values of their respective companies? Or is there something else that helps to explain episodes of surprisingly high volatility, from market-wide plunges to the sudden surges of meme stocks? On this episode of the Chicago Booth Review Podcast, we explore the inelastic markets hypothesis, which suggests that fund flows and investor demand play an important role in market behavior.