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
five happened last market moves number rank tells
If you rank the top 50 one-day moves in the S&P 500, a fair number of those happened within the last five or 10 years. That tells you that we're in a different, riskier market now.
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.
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.
efficiency extreme extremes fear generate market periods proper
During periods of extreme fear or greed, you don't have the proper balance between those two to generate market efficiency and you get extremes in behavior.
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.