Andrew Lo
Andrew Lo
Andrew Wen-Chuan Lois the Charles E. and Susan T. Harris Professor of Finance at the MIT Sloan School of Management. Lo is the author of many academic articles in Finance and Financial economics...
ProfessionEconomist
affected either great themselves
Cancer is the great equalizer. Everyone is affected by it either themselves or through loved ones.
adaptive change depending develop engaged hypothesis investors markets population says time
The adaptive markets hypothesis says that all economic institutions, like our own species, develop and change over time, depending on the population of investors that are engaged with them.
allow decent good people rate sufficient
If we are able to allow people to earn a decent rate of return, with sufficient scale, we can all do well by doing good.
access coming everywhere investors markets money savvy united
More and more investors may be coming into markets everywhere but that doesn't mean that the markets are really getting more and more efficient, even in the United States. It does mean that there is more access for savvy investors who watch the money flows.
financial modern crisis
Financial crises are an unfortunate but necessary consequence of modern capitalism.
money intuition needs
Great investors need to have the right combination of intuition, business sense and investment talent.
probability-theory risk management
Maybe we should teach schoolchildren probability theory and investment risk management.
technology labor cheaper
Labor is getting more expensive and technology is getting cheaper.
risk appreciated assets
The risks facing hedge funds are non-linear and more complex than those facing traditional asset classessuch risks are currently not widely appreciated or well-understood
impact greed study
While neurological studies have tried to identify components responsible for fear and greed, the impact on finance is less clear.
simple psychological-disorders law
Economists suffer from a deep psychological disorder that I call 'physics envy'. We wish that 99 percent of economic behavior could be captured by three simple laws of nature. In fact, economists have 99 laws that capture 3 percent of behavior. Economics is a uniquely human endeavor ...
opportunity doe bags
The United States has the most sophisticated financial markets in the world, which does not leave much room to maneuver. But it also offers investors the greatest access to information and the ability to execute trades quickly and efficiently. So it is a mixed bag of opportunity.
reality thinking may
Many of us like to think of financial economics as a science, but complex events like the financial crisis suggest that this conceit may be more wishful thinking than reality.
amount create fact fair flip function funds problems side
The fact that hedge funds have become so important is really the flip side of problems that could be generated. If they ceased to function in the way they are designed, that would create a fair amount of systemic risk.