Adaptive Markets: Financial Evolution At The Speed Of Thought | Andrew W. Lo | Talks at Google

Half of all Americans have money in the stock market, yet economists can’t agree on whether investors and markets are rational and efficient, as modern financial theory assumes, or irrational and inefficient, as behavioral economists believe-and as financial bubbles, crashes, and crises suggest. This is one of the biggest debates in economics, and the value or futility of investment management and financial regulation hang on the outcome.
In his new book, Andrew Lo cuts through this debate with a new framework, the Adaptive Markets Hypothesis, in which rationality and irrationality coexist.
Drawing on evolutionary biology, neuroscience, artificial intelligence, and other fields, Adaptive Markets shows that the theory of market efficiency isn’t wrong, but merely incomplete. Taking several examples from his book, Prof. Lo will provide an overview of his new theory of financial markets and what it means for financial crises, how we invest, and the future of financial technology.
Get the book here: goo.gl/5W3py6
Moderated by Saurabh Madaan.

[@gregorybattis9588]

Amazing and brilliant. Came here after finishing his series on MIT open courseware. We are lucky to be living in a time where technology can provide this to us.

[@avesta1994]

so true

[@mr.pootis2472]

Professor Lo is an amazing speaker and lecturer.I really appreciate him

[@oxvaldus]

Started reading some of their papers on credit risk, then I had the chance to assist to one of his classes at MIT, and then, after reading this book, I'm sure this kind of multidisciplinary approaches to finance are going to take over our ideas on markets, and about everything really. Thank you professor Lo

[@wei-chunlee7140]

Professor Lo is an amazing speaker and lecturer. His speech is always very well organized and tailored to the audience.

[@rafaeldupa]

Amazing talk! This book just entered my reading list! (Came here from MIT opencourse Series too)

[@dr.norbertmittwollen3253]

Brilliant lecture, opening eyes and doors for the future of Finance.

[@iqranadeem7924]

Amazing speaker

[@dr.norbertmittwollen3253]

Great lecture from a master of finance. Wish him to get the Nobel prize.

[@bluewhale37]

Came here after veritasium! Following finance trail .

[@shivaprasad098765432]

God this hits different. Fleeting nature of life slaps on your face. After seeing Andrew Lo in his famous 2008 MIT series, this just refuses to sits with me.

[@jameszeris5418]

Great talk!!!

[@phanquochung3924]

valuable lessons

[@hl3641]

We need more like prof. Lo Not stupid madoff

[@askaraituov]

Hello from Central Asia developers from Almaty!

[@ravindertalwar553]

I appreciate your thoughts and skills and wish you all the very best for your success and happiness ❤️

[@arrowb3408]

MY goodness, just felt asleep while watching Prof Lo's lecturer of 2008 version played as podcast till one knocked on my room as 2019 Halloween. That knocking sound woke me up and messed up previous video. Retracking back again it brought me "Back future" 10 years after. Lo' s facial appearance becomes more mature... Hahaha, still BOLD and much more glittering. Well good example for me to know he published his own book. Will check it out........STF........

[@douglashurd4356]

I was really hoping for equations.

[@eriangelino7800]

In evolutionary theory, adaptation enables survival - and survival is the good outcome. But here, in the NASCAR example, adaptation leads to bad outcome [more accidents]. So, are you saying adaptation is bad?

[@kevinbroecker]

Very interesting but the volatility of prices on the fish markets doesn't imply inefficiency. Inefficiency would mean that somebody could have profited from the volatility, but even going back in time with the knowledge we have now, we wouldn't be able to: Once you realize that a market has too little supply, you couldn't simply run to the next market, buy fish, run back and sell it, or someone would have been smart enough to do that. You couldn't have bought the fish on days were supply was overabundant and stored it for a day were supply was low to sell it at a premium because it would've gone bad. So there is no arbitrage (space or time) to be had => prices were efficient. What the cellphone does is equivalent to modern supply-chain technology, leveling the supply.

[@merovingiean]

Interesting thought.... But maybe the asset changed before and after cellphones? Or do you think it is same fish? What if instead of cellphones let's say you have refrigerator and we have frozen fish. Maybe frozen fish (different asset,) is less volatile than fresh fish

[@arrowb3408]

That's interesting for a scholar to do some economic developments in the rural of Third World related to mobile introduction into the place. .......STF.....

[@arrowb3408]

Aha, this is a really beefy crystal clear financial analysis from his specific penetration in investment compared with the average Joe's words. Terrific....STF.....

[@jetevatepto590]

Adaptive market hypothesis

[@tsunamiff5012]

👍👍

[@abdullahfaraj9803]

هلا بالعرب . شجايبك اهني

[@arrowb3408]

Who is that questioning to Lo with a bunch of non topic of questions but a lot of redundant filling words? Jesus Crist!

[@EliotMcLellan]

WQHEN DID HE NENTIONS BITCOIN

[@anshupandey6260]

16:17,49:58

[@anshupandey6260]

55:07

[@arrowb3408]

That is superstitious to say Rabi or abradebra cadebra casting spells. That is brain rationalizing a situation to self by psychology rather algorithm at all.................Hahaha.......Sorry Prof Lo................STF......................

[@shafaquenarayan4933]

Daddy will 💤🌪️💨 monopolysed 2051 pc "`

[@CeleronS1]

This guy clearly have not done his homework! Think about it, somewhere bank is liquidating all its assets because it going out of business. Dropping shares on market makes company in our interest go down in mcap value. And it means nothing to actual company fundamental value. Supply and demand is everything, market efficiency does not exist. Or it defined very wrongly.

[@ktanrko]

i agree markets are not efficient but actually you need to do your homework re:finance; most academic works assume the efficiency of market which he acknowledges is "incomplete". His work bridges the gap between the quantitative finance and the anomalies caused by human behavior.

[@singhprabhjinder]

You have definitely not listened the whole talk.

[@nikolaygeorgiev1680]

You are clearly an idiot, obviously. "This" guy is a tenured professor at MIT devoting his whole life to finance, and rumored to be one day a recipient of the Nobel prize.