While neurological studies have tried to identify components responsible for fear and greed, the impact on finance is less clear. Andrew Lo Read Quote
If troubled companies want to explain away 2008 as a ‘black swan,’ then someone should take responsibility for creating the oil slick that seems to have tarred the entire flock! Andrew Lo Read Quote
Financial crises are an unfortunate but necessary consequence of modern capitalism. Andrew Lo Read Quote
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. Andrew Lo Read Quote
Maybe we should teach schoolchildren probability theory and investment risk management. Andrew Lo Read Quote
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. Andrew Lo Read Quote
Some people might say, ‘Can we afford it?’ I think that’s asking the wrong question… We should instead be asking, ‘Can we really afford not to try?’ Andrew Lo Read Quote
What makes this story so remarkable is that throughout my early childhood I had ongoing learning difficulties, particularly in mathematics. I struggled to learn the multiplication table, and no matter how hard I tried, I simply couldn’t remember 6 times 7 or 7 times 8. Andrew Lo Read Quote
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. Andrew Lo Read Quote
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. Andrew Lo Read Quote
