In an article that addresses the short supply of good ecnomics in the wake of the financial crisis, MIT Sloan Prof. Andrew Lo states that "the profession has reached a cul-de-sac"...

Wall Street did normalize after the Dow dropped a harrowing 600 points in just a few minutes last year, but some investors say not enough is being done to prevent another Flash Crash.

...more than the last financial crisis. "The impact of the next crisis will be greater because the economy is in a much more fragile state," said Andrew Lo, professor of Finance at the MIT Sloan School of Management. "My worry about the next financial crisis is it will come from some corner..."

Liquidity and a Premium? This is a brief review of a surprising result from a working paper by Andrew Lo and Amir Khandani.

Massachusetts Institute of Technology finance professor Andrew W. Lo and Mark T. Mueller, a senior lecturer at MIT's Sloan School of Management, are the first winners of the Harry M. Markowitz Award for their 2010 paper exploring the limitations of quantitative models in predicting market outcomes.

"It is a technological arms race in financial markets and the regulators are a bit caught unaware of how quickly the technology has evolved," says Andrew Lo, director of the Laboratory for Financial Engineernig at M.I.T. "Sometimes, too much technology without the ability to manage it effectively can yield some unintended consequences. We need to ask the hard questions about how much of this do we really need. It is the Wild, Wild West in trading."...

MIT Laboratory for Financial Engineering's Andrew Lo on why volatility is the biggest risk to your investments.

MIT Sloan Prof. Andrew Lo and fellow researchers have built models and algorithms that attempt to account for overconfidence in certain market sectors and extreme risk aversion in others: "The problem is that you can't manage what you don't measure," he says. "And since we don't have single measure of systemic risk, we can't say whether it is higher or lower today than it was before."...

Andrew Lo is quoted about the shrinking size of the nation's stock market: "We should be very concerned about this trend. Capital markets are central to business formation and economic growth, and if listings are falling, that is a sign there is not the same level of capital formation as there was in the past."

Risk management has begun to eclipse investment returns as the primary focus of a growing number of U.S. pension fund executives, reflecting lingering concerns over just how vulnerable institutional portfolios proved during the market's recent meltdown. MIT professor, Andrew Lo says that a growing number of institutional investors have "gotten religion," concluding they can't sit idly by and allow these volatility shocks to take them by surprise.

"Why would you equalize risks if some risks are not giving you proper rewards?" MIT Sloan Prof. Andrew Lo asks of risk parity funds.

Like a contemporary "whodunit" with a global crime scene, the financial meltdown has left behind countless victims, and lots of pointing fingers. The reasons for the collapse are debated by this group of estimable economists, some of whom worry that without really understanding what happened, we are in for a repeat episode.

MIT Sloan Prof. Andrew Lo, manager of the Natixis ASG Managed Futures Strategy Fund, advocates vigilant oversight of Managed Futures products, to limit the risk of abuse. "The regulations need to be toughened up even more," he said. "There's all sorts of opportunities and potential for abuse if we don't manage this carefully."...

MIT Harris & Harris Group Professor Andrew Lo on how investors can make heads or tails of the mounds of market information to make smart investments and create a diverse portfolio.