Adaptive Markets

Financial Evolution at the Speed of Thought

By: Andrew W. Lo

Narrated by: Jonathan Yen

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 W. 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.

©2017 Princeton University Press (P)2018 Tantor

Made finance enjoyable

If you could sum up Adaptive Markets in three words, what would they be?

Made finance understandable.

What other book might you compare Adaptive Markets to and why?

The only one I can think of right now is "Black Swan." But this one is straightforward whereas the the other one is little pompous.

Which scene was your favorite?

Not applicable.

If you were to make a film of this book, what would the tag line be?

Not applicable.

Any additional comments?

If you want to understand finance from a leading expert who explains it without using any formulas, then get this book. It is long but well worth the effort. You will be much smarter than before.

pie in the sky socialist finance marketing.

listened twice. ideas outside the box. analaogy: written by someone from the marketing Dept of a finance magazine

Deserves a higher score, but could not download the extra pet from audio books nor from the publisher's website.

Presents some interesting concepts that connect stock market behavior with natural processes. Interesting and informative. Now i need some excel file so I can put adaptive techniques into use...

World Changing

A truly incredible work produced by an exceptional mind. The interdisciplinary components of this text are astounding. The last three chapters are world changing.

Meandering

Insights into the workings of the finance industry are very interesting but the “text” meanders. The adaptive markets hypothesis is also interesting but it’s not compelling.