Experts say investors should expect even more volatility in stocks, as herd trading by hedge funds, knee-jerk trader reaction to news and lightning fast computer programs combine to make for a new and uncomfortable normal on Wall Street. MIT Sloan Professor, Andrew Lo, says "We are seeing extraordinary emotional reactions from central banks, politicians, regulators and investors. That kind of reaction is not conducive for building long-term wealth."

Andrew Lo's recent research—which weaves together the work of psychologists, neuroscientists, biologists, and economists—is highlighted in this article.

A summary of the presentation made by Andrew Lo and John Thain at the MIT150 Computation and the Transformation of Practically Everything Symposium held in April.

Andrew Lo joins host, Neil DeGrasse Tyson, to discuss personal finance and the science of money management, guiding listeners on a non-random walk down Wall Street and revealing the neurobiology behind financial transactions. TV host Suze Orman also gives her two cents about investing, the economic meltdown, and the impact of science on the financial world.

OptiRisk, the optimisation and financial analytics provider, announced the publication of 'The Handbook of News Analytics in Finance', the first compilation of the research from leading industry experts on the impact of news in moving the financial markets. Andrew Lo's research is included.

Clever schemes to make bankers earn their bonuses look good on paper, but economics proves they won't work. Finance theorist Andrew Lo is mentioned as having first said 10 years ago that there's a fundamental problem with finance.

MIT Sloan Prof. Andrew Lo's book, The Evolution of Technical Analysis: Financial Prediction from Babylonian Tablets to Bloomberg Terminals, co-authored with Jasmina Hasanhodzic is highlighted as a book to read.

Andrew Lo's research is highlighted in this article, which questions why the success of particular strategies changes over time. According to Lo, "the basic premise here is that investors have bounded rationality."...

"Economists desire to be able to explain 99% of all economic phenomena with three laws," says MIT Sloan Prof. Andrew Lo in a discussion on why economists envy physicists. "That's what physicists can do [in physics]. In fact, [in economics] we have 99 laws that explain maybe 3% of all phenomena"...

Recently, the National Science Foundation sent out a query asking economists and social scientists to draw up "grand challenge questions that are both foundational and transformative"—a request that Andrew Lo, says is a first in his experience.

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.

A workshop sponsored by America's National Science Foundation at which economists explored the potential of "agent-based models" (ABM) is highlighted. Professor Lo presented a model of the American housing market, inspired by ABM approaches, which showed how a fateful conjunction of rising house prices, falling interest rates and easy access to refinancing created an awesome burden of debt.

...Many of us are in deep mourning—for big stock losses going back to 2008. And our sorrow is so similar to what we feel after divorce or death in the family that we're likely working through the five stages of grief, says Andrew W. Lo, a finance professor at MIT who has studied investor behavior.

A central challenge to the efficient markets hypothesis is the existence of stock market anomalies. Andrew Lo says: "If the Efficient Markets Hypothesis in its classical form seems to be violated so often, maybe we economists ought to re-examine our theory instead of arguing that the world is crazy."