Adaptive Markets

Financial Evolution at the Speed of Thought

Author: Andrew W. Lo

Publisher: Princeton University Press

ISBN: 1400887763

Category: Business & Economics

Page: 504

View: 4683

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A new, evolutionary explanation of markets and investor behavior Half of all Americans have money in the stock market, yet economists can't agree on whether investors and markets are rational and efficient, as modern financial theory assumes, or irrational and inefficient, as behavioral economists believe—and as financial bubbles, crashes, and crises suggest. This is one of the biggest debates in economics and the value or futility of investment management and financial regulation hang on the outcome. In this groundbreaking book, Andrew Lo cuts through this debate with a new framework, the Adaptive Markets Hypothesis, in which rationality and irrationality coexist. Drawing on psychology, evolutionary biology, neuroscience, artificial intelligence, and other fields, Adaptive Markets shows that the theory of market efficiency isn't wrong but merely incomplete. When markets are unstable, investors react instinctively, creating inefficiencies for others to exploit. Lo's new paradigm explains how financial evolution shapes behavior and markets at the speed of thought—a fact revealed by swings between stability and crisis, profit and loss, and innovation and regulation. A fascinating intellectual journey filled with compelling stories, Adaptive Markets starts with the origins of market efficiency and its failures, turns to the foundations of investor behavior, and concludes with practical implications—including how hedge funds have become the Galápagos Islands of finance, what really happened in the 2008 meltdown, and how we might avoid future crises. An ambitious new answer to fundamental questions in economics, Adaptive Markets is essential reading for anyone who wants to know how markets really work.
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Taking the Floor

Models, Morals, and Management in a Wall Street Trading Room

Author: Daniel Beunza

Publisher: Princeton University Press

ISBN: 0691185999

Category: Social Science

Page: 344

View: 9783

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Debates about financial reform have led to the recognition that a healthy financial system doesn’t depend solely on how it is structured—organizational culture matters as well. Based on extensive research in a Wall Street derivatives-trading room, Taking the Floor considers how the culture of financial organizations might change in order for them to remain healthy, even in times of crises. In particular, Daniel Beunza explores how the extensive use of financial models and trading technologies over the recent decades has exerted a far-ranging and troubling influence on Wall Street. How have models reshaped financial markets? How have models altered moral behavior in organizations? Beunza takes readers behind the scenes in a bank unit that, within its firm, is widely perceived to be “a class act,” and he considers how this trading room unit might serve as a blueprint solution for the ills of Wall Street’s unsustainable culture. Beunza demonstrates that the integration of traders across desks reduces the danger of blind spots created by models. Warning against the risk of moral disengagement posed by the use of models, he also contends that such disengagement could be avoided by instituting moral norms and social relations. Providing a unique perspective on a complex subject, Taking the Floor profiles what an effective, responsible trading room can and should look like.
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The USA and The World 2019-2020

Author: N.A

Publisher: Rowman & Littlefield

ISBN: 1475852444

Category: History

Page: 304

View: 5445

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Updated annually and part of the renowned “World Today Series,” USA and the World presents an unusually penetrating look into America and its relationship to the rest of the world.
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Money for the Rest of Us: 10 Questions to Master Successful Investing

Author: J. David Stein

Publisher: McGraw Hill Professional

ISBN: 1260453871

Category: Business & Economics

Page: 272

View: 4527

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Learn how to protect and grow your wealth with this commonsense guide to investing You manage your own money. You understand the basics of investing and diversifying your portfolio. Now it’s time to invest like a pro for greater profits—with investment expert David Stein, host of the popular weekly podcast, “Money for the Rest of Us.” He’s created a unique ten-question template that makes it easy for individual investors like you to: • Invest more confidently • Feel less overwhelmed • Build a stronger portfolio • Avoid costly mistakes • Plan and save for retirement Despite what many people believe, you don’t need to be an expert to be a successful investor. With Stein as your personal money mentor, you’ll learn how to make smarter, more informed decisions that can help reduce your risk and increase your gains by following a few simple rules for analyzing any investment. This is how the professionals grow their wealth and how you can, too. This is Money for the Rest of Us.
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Investing: The Last Liberal Art

Author: Robert G. Hagstrom

Publisher: Columbia University Press

ISBN: 023153101X

Category: Business & Economics

Page: 216

View: 1629

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Robert G. Hagstrom is one of the best-known authors of investment books for general audiences. Turning his extensive experience as a portfolio manager at Legg Mason Capital Management into valuable guidance for professionals and nonprofessionals alike, he is the author of six successful books on investment, including The Warren Buffett Way, a New York Times best-seller that has sold more than a million copies. In this updated second edition of Investing: The Last Liberal Art, Hagstrom explores basic and fundamental investing concepts in a range of fields outside of economics, including physics, biology, sociology, psychology, philosophy, and literature. He discusses, for instance, how the theory of evolution disrupts the notion of the efficient market and how reading strategies for literature can be gainfully applied to investing research. Building on Charlie Munger's famous "latticework of mental models" concept, Hagstrom argues that it is impossible to make good investment decisions based solely on a strong knowledge of finance theory alone. He reinforces his concepts with additional data and a new chapter on mathematics, and updates his text throughout to reflect the developments of the past decade, particularly the seismic economic upheaval of 2008. He has also added a hundred new titles to the invaluable reading list concluding the book. Praise for the first edition: "I read this book in one sitting: I could not put it down."—Peter L. Bernstein, author of Against the Gods: The Remarkable Story of Risk "Elegant and irresistible. Robert G. Hagstrom makes the complex clear as he confidently crisscrosses through the disciplines of finance, biology, physics, and literature. The only way to understand investing better, [Investing] shows, is to understand the world better. Ideas spark off the page at every turn. This is simply a gem of a book."—James Surowiecki, New Yorker "Investing is a brisk and engaging read, and it is a pleasure to be in the presence of Hagstrom's agile mind."—International Herald Tribune
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Simulated Evolution and Learning

First Asia-Pacific Conference, SEAL'96, Taejon, Korea, November 9-12, 1996. Selected Papers.

Author: Xin Yao,Jong-Hwan Kim,Takeshi Furuhashi

Publisher: Springer

ISBN: 9783540633990

Category: Computers

Page: 233

View: 3600

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This book constitutes the thoroughly refereed post-conference documentation of the First Asia-Pacific Conference on Simulated Evolution and Learning, SEAL'96, held in Taejon, Korea, in November 1996. The 23 revised full papers were selected for inclusion in this book on the basis of 2 rounds of reviewing and improvements. Also included are invited papers by John L. Casti and Lawrence J. Fogel. The volume covers a wide range of current topics in simulated evolution and learning e.g. evolutionary optimization, evolutionary learning, artificial life, hybrid evolutionary fuzzy systems, evolutionary artificial neural networks, co-evolution, novel evolutionary approaches to computer tomography image reconstruction, power systems load flow control, and water flow control in cropped soils.
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