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
engaged good horrified people
Most people are overconfident about their own abilities. That is probably a good thing. But we would be horrified if a physician's aide engaged in heart surgery.
credit fairly five funds grown last
Credit derivatives and hedge funds have grown fairly spectacularly over the last five years.
direction good longer money number obvious park past produced returns sidelines sitting smart strategies waiting
At this point, there isn't an obvious place to park money, ... A number of strategies that produced good returns in the past are no longer profitable. A lot of the smart money is sitting on the sidelines right now just waiting for the direction to change.
answer data measure nobody particular reason short
The short answer is, I don't know. Nobody knows. The reason for that is, we don't have enough data on the particular exposures we need to measure to answer that question.
mother cancer years
My mother died of lung cancer last year. I felt helpless. As an economist, I thought, What can I do?
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.
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 ...
impact greed study
While neurological studies have tried to identify components responsible for fear and greed, the impact on finance is less clear.
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
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.
money intuition needs
Great investors need to have the right combination of intuition, business sense and investment talent.
financial modern crisis
Financial crises are an unfortunate but necessary consequence of modern capitalism.
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.