Andrew lo

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.

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.

I don't entirely reject the idea of efficient markets. It needs updating.

My mother died of lung cancer last year. I felt helpless. As an economist, I thought, 'What can I do?'

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.

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?'

It's important to understand how people perceive risk, and how that translates into investment behavior.

Ideas percolate. Through natural selection, the best ones survive.

Financial crises are an unfortunate but necessary consequence of modern capitalism.

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...