"Finance Genius Andrew Lo Explains How The World's Biggest Problems Can Be Fixed With Financial Engineering"

I don't know about solving "the world's biggest problems," but this is good advice:

. . . you’ve got to get smarter and more active about your financial health. In the same way that doctors and nutritionists tell us that we’ve got to be more proactive about reading the labels and making sure we get enough vitamins and fiber, the good kind of cholesterol and not the bad kind, and so on, we have to be more proactive about our fin wellbeing, we have to understand what the fin landscape looks like in the new world order, various kind of investment vehicles, we have to understand what the risks are behind some of those vehicles.

Comments

[Jack P.]

I like Lo, but I think his advice is only for about 5% of Americans who can get creative with their financial strategies.

For anyone else who has money to invest, fees, bid-ask and other transaction costs are likely to eat up whatever alpha is generated.

Passive investing, index funds, seems the way to go for most. Although there is some evidence that low-risk, investment-grade corporate bonds beats everything else over the long run. Go figure.