Andrew Lo says "I am worried about the potential instability that these technologies create in market dynamics. The U.S. equity markets have become the Wild, Wild West."

MIT Sloan professor Andrew Lo says that quant managers need to focus on the adaptation to changing environments that characterizes the biological realm, rather than the sort of immutable laws that form the foundation of physics.

There's high-frequency trading, and now there's high-frequency crashing. But identifying the causes of the 6th May 2010 'flash crash' has proved to be a relatively slow process. Bob Giffords goes in search of causes, outcomes, explanations and lessons to be learned. Andrew Lo gives his take on it.

"What we thought was diversified became very highly correlated because of the global integration of the financial markets. Assets we thought were uncorrelated have moved together, so we have to be much more thoughtful about asset allocation," says MIT Sloan Prof. Andrew Lo.

MIT Sloan Prof. Andrew Lo co-authored a report on an experiment to find out if humans are able to distinguish between real and randomly generated financial data.

Andrew Lo presenting at 2009 SIAM annual meeting to discuss the causes of the financial crisis.