Booming U.S. economy fueling prosperity throughout industryPrint | September 30, 2018
Thus far, 2018 has proven to be a prosperous year for many in the industry, thanks in no small part to the strength of the U.S. economy.
And while economists are predicting a slowdown in growth next year, the next 12 months, barring unforeseeable incidents, should remain strong, with few signs of a pullback on the horizon.
"The economy is clearly strong," said Andrew Lo, a professor at MIT's Sloan School of Management and director of the MIT Laboratory for Financial Engineering. "We've got pretty low unemployment, very reasonable inflation, and all eyes are on the stock market, which has done quite well. I think, overall, both in the United States and more broadly around the world, things are going quite well. In that kind of an environment, it's no wonder people are confident about the future and willing to spend money on things like vacation and travel."
The Best Finance Books recommended by Andrew W LoPrint | September 17, 2018
Financial industry scans horizon for next crisis, 10 years after Lehman’s fallPrint | September 14, 2018
S&P Global Market Intelligence
S&P Global Market Intelligence
At the height of the credit crunch in 2008, academics at the London School of Economics were infamously caught off guard when the Queen of England asked why no one saw the financial crisis coming. Now, 10 years after the collapse of Lehman Brothers Holdings Inc. on Sept. 15, 2008, economists, regulators, policymakers and finance industry insiders are asking themselves where the next financial crisis could come from, and what danger signals they should watch for, to avoid being blindsided again.
While there are several areas of potential concern, industry experts broadly do not believe a systemic collapse on the same scale of 2008 is on the horizon.
Three common financial errors and how to avoid themPrint | September 13, 2018
If your house is on fire, what is the plan? Head for the exit, naturally. But if a market crash is burning a big hole in your investment portfolio, selling out may not be the best course of action. The very same emotions and biases that can lead to good decisions in many areas of daily life can lead us astray in matters of money, experts say.
The Science Of Patient Preferences In Med Device Clinical Trial DesignPrint | August 20, 2018
Med Device Online
Med Device Online
Statisticians use it. Non-statisticians have heard of it (likely in the context of the standard threshold of p = 0.05). While it’s not the only component of a clinical trial design, the p-value helps determine the maximum acceptable level of uncertainty associated with clinical evidence and, in a way, the fate of patient access to a new medical device.
But, is the traditional 0.05 threshold too restrictive for the patient populations willing to accept more uncertainty, depriving them of treatment options? Is it too permissive for other patient populations? Can we optimize clinical trial design by considering patients’ urgency for new therapeutic options, as well as their willingness to accept uncertainty?
The World Economic Forum warns that AI may destabilize the financial systemPrint | August 15, 2018
MIT Technology Review
MIT Technology Review
Artificial intelligence will reshape the world of finance over the next decade or so by automating investing and other services—but it could also introduce troubling systematic weaknesses and risks, according to a new report from the World Economic Forum (WEF).
Compiled through interviews with dozens of leading financial experts and industry leaders, the report concludes that artificial intelligence will disrupt the industry by allowing early adopters to outmaneuver competitors. It also suggests that the technology will create more convenient products for consumers, such as sophisticated tools for managing personal finances and investments.
But most notably, the report points to the potential for big financial institutions to build machine-learning-based services that live in the cloud and are accessed by other institutions.
A Cross-Disciplinary Course on Biotech’s “Valley of Death”Print | July 16, 2018
Basic biomedical research may be in its most fruitful period in history: each year, with new technologies helping scientists advance our understandings of the underlying basis of human disease. At the same time, it’s increasingly difficult to undertake the process of translating promising biomedical discoveries into new drugs or diagnostics, especially those that will help relatively small numbers of people. “The problem rests not in the science,” says Whitehead Institute Founding Member Harvey Lodish, “but with the lack of funding for early-stage development.”
Lo’s ‘dynamic alpha’ gives quants new tool to fine-tune strategiesPrint | July 10, 2018
Alpha is the long-established measure of investment performance. But Andrew Lo has come up with a new twist on the metric.
He calls it dynamic alpha, and it tells you over what time horizon an individual investor or trading model does best.
Lo, who is an academic and investor, believes quant managers could use the measure to mould strategies to trade at the most effective frequency. Pension funds and insurers could use it to ensure diversification across investment styles.
How Investors Use Twitter to Beef Up ReturnsPrint | May 14, 2018
Life happens on social media first. When North Korea fires a ballistic missile, Korean news agencies tweet about it. When President Donald Trump has a beef with Amazon.com (ticker: AMZN) – or anyone, really – he tweets about it. Social media is becoming "a place where decision-makers go to share information," says Adela Quinones, news product manager at Bloomberg LP in New York. From public figures to company spokesmen, people are increasingly using social media to update the world about events that affect stock markets.
CEO Says App Could Raise Billions For Alzheimer’s ResearchPrint | April 25, 2018
“Nobody’s talking about this story,” Max Tokarsky said. Not exactly true, as the founder and CEO of InvestAcure is telling anyone who will listen. A former non-profit executive-turned-evangelist for the Impact Investment and Public Benefit Corporation model, Tokarsky is slated to present the keynote address at the Alzheimer's-2018 International Conference in Rome, Italy May 8. The Rome conference brings together researchers from around the world focused on groundbreaking research to slow, reverse or prevent dementia and Alzheimer’s disease. A life-long social entrepreneur and former non-profit executive, Tokarsky will present "The Enigma of Eroom’s Law and The Wall Street Math Stifling Alzheimer’s Drug Discovery" in Rome. He wants to talk about funding a cure for Alzheimer’s disease. But he’s not talking about just asking major corporations or the government or even Big Pharma for help. Tokarsky wants everyone to pitch in. And he’s figured out a way we can.