If someone wants a better return, they have no choice but to take additional risk, no matter how they feel about risk or how risk averse they may be.
—Sol WaksmanIn This Episode, You'll Learn:
- Why relatively so few investors have added managed futures and trend following to their portfolio, despite all the evidence
- The lessons different groups of people can still learn from the economic crisis of 2008
- How political uncertainty affects where investors put their money
[Many of these finance] technologies are now creating new sub-industries. Who would have thought that cryptocurrencies would be a separate asset class, but it seems like it's emerging as such.
—Andrew Lo- What Sol sees as the constant lesson we should be learning from these periodic economic events
- Why investors have a hard time grasping the advantages of the liquidity that trend following brings to investments
- The present and future impact of artificial intelligence on the finance industry
What have we learned from this last stock market crash? I think we keep learning the same lesson, and that lesson is that when liquidity dries up, all correlations go to 1.
—Sol Waksman- Why Andrew believes the centralization to one cryptocurrency is inevitable
- The advice Andrew and Sol have for investors to prepare for the future
This episode was sponsored by CME Group:
Connect with our guests:
Learn more about Andrew Lo and MIT Sloan School of Management
Learn more about Sol Waksman and BarclayHedge, Ltd.
I think there were a lot of lessons that were offered by the financial crisis, but the real question is who actually took those lessons to heart.
—Andrew Lo