Andrew Lo

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. ↗

— Andrew Lo

#conceit #crisis #economics #events #financial

Maybe we should teach schoolchildren probability theory and investment risk management. ↗

— Andrew Lo

#management #maybe #probability #risk #risk management

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. ↗

— Andrew Lo

#about #aide #engaged #good #good thing

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

— Andrew Lo

#died #economist #felt #helpless #i

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

#asking #i #i think #instead #might

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

#change #depending #develop #economic #engaged

While neurological studies have tried to identify components responsible for fear and greed, the impact on finance is less clear. ↗

— Andrew Lo

#components #fear #finance #greed #identify