The United States has the most sophisticated financial markets in the world, which does not leave much room to maneuver. But it also offers investors the greatest access to information and the ability to execute trades quickly and efficiently. So it is a mixed bag of opportunity.
From Andrew Lo
Financial crises are an unfortunate but necessary consequence of modern capitalism.
If troubled companies want to explain away 2008 as a 'black swan,' then someone should take responsibility for creating the oil slick that seems to have tarred the entire flock!
Ideas percolate. Through natural selection, the best ones survive.
I don't entirely reject the idea of efficient markets. It needs updating.
The adaptive markets hypothesis says that all economic institutions, like our own species, develop and change over time, depending on the population of investors that are engaged with them.
If you rank the top 50 one-day moves in the S&P 500, a fair number of those happened within the last five or 10 years. That tells you that we're in a different, riskier market now.
If we are able to allow people to earn a decent rate of return, with sufficient scale, we can all do well by doing good.
Cancer is the great equalizer. Everyone is affected by it either themselves or through loved ones.
More and more investors may be coming into markets everywhere but that doesn't mean that the markets are really getting more and more efficient, even in the United States. It does mean that there is more access for savvy investors who watch the money flows.
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