Ben Waber reviewed Adaptive markets by Andrew W. Lo
A Fantastic Finance Book with Extraneous Neuroscience/Psychology Chapters
4 stars
The chapters of this book that deal with financial markets and how they operate are exceptional and insightful, detailing different aspects of how they work and contrasting this reality with past idealized versions of "efficient markets." Lo also offers an illuminating explanation of different recent financial crises and possible ways to mitigate them in the future. There are unfortunately a number of extraneous chapters on partially discredited/dated psychology and neuroscience phenomena. These add nothing to the rest of the book and are what you would find in an intro textbook in these topics ~25 years ago. If you skip these chapters the book is a must read. Highly recommend
The chapters of this book that deal with financial markets and how they operate are exceptional and insightful, detailing different aspects of how they work and contrasting this reality with past idealized versions of "efficient markets." Lo also offers an illuminating explanation of different recent financial crises and possible ways to mitigate them in the future. There are unfortunately a number of extraneous chapters on partially discredited/dated psychology and neuroscience phenomena. These add nothing to the rest of the book and are what you would find in an intro textbook in these topics ~25 years ago. If you skip these chapters the book is a must read. Highly recommend