A new, evolutionary explanation of markets and investor behaviorHalf 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. The debate is one of the biggest in economics, and the value or futility of investment management and financial regulation hangs on the answer. In this groundbreaking book, Andrew Lo transforms the debate with a powerful new framework in which rationality and irrationality coexist―the Adaptive Markets Hypothesis. Drawing on psychology, evolutionary biology, neuroscience, artificial intelligence, and other fields, Adaptive Markets shows that the theory of market efficiency is incomplete. When markets are unstable, investors react instinctively, creating inefficiencies for others to exploit. Lo’s new paradigm explains how financial evolution shapes behavior and markets at the speed of thought―a fact revealed by swings between stability and crisis, profit and loss, and innovation and regulation. An ambitious new answer to fundamental questions about economics and investing, Adaptive Markets is essential reading for anyone who wants to understand how markets really work.
✔ Author(s): Andrew W. Lo
✔ Title: Adaptive Markets: Financial Evolution at the Speed of Thought
✔ Rating : 4.5 out of 5 base on (474 reviews)
✔ ISBN-10: 0691191360
✔ ISBN-13: 9780691191362
✔ Language: English
✔ Format ebook: PDF, EPUB, Kindle, Audio, HTML and MOBI
✔ Device compatibles: Android, iOS, PC and Amazon Kindle
Readers' opinions about Adaptive Markets by Andrew W. Lo
Lucy Garraway
This book completely captured my heart. The characters were so relatable, and their journeys resonated deeply with me. The writing was poetic and powerful, leaving me with a sense of awe. I'm grateful to have experienced this literary gem.
Melody Blake
What an intellectual journey! The themes explored in this book challenged my perceptions and sparked introspection. It's refreshing to read a book that provokes such thought.
Josephine Alvarez
This book is a treasure trove of knowledge and wisdom. The insights offered by the characters and their experiences have left a lasting impression on me.
