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"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 Waksman (Tweet) Welcome to Top Traders Round Table, a podcast series on managed futures brought to you by CME Group, where host Niels Kaastrup-Larsen continues his conversation with Andrew Lo, the Charles E. and Susan T. Harris Professor at the MIT Sloan School of Management, and Sol Waksman, the Founder and President of BarclayHedge, Ltd. Listen in to learn the effects of politics in the financial markets and how trend following fits in, the state of cryptocurrency in the current market, and the advice our guests have for investors and their future. Subscribe on: In 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 (Tweet) 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 (Tweet) 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 (Tweet) Full Transcript The following is a full detailed transcript of this conversion. Click here to subscribe to our mailing list, and get full access to our library of downloadable eBook transcripts! Niels Welcome back to Top Traders Round Table, a podcast series on managed futures brought to you by CME group where I continue my conversation with Andrew Lo, who is a professor at MIT Sloan School of Management and Director of MIT’s laboratory for financial engineering, as well as the founder, and, since 2018, the Chairman Emeritus at AlphaSymplex Group, and of course, the most recent winner of the Managed Futures Pinnacle Award. I’m also joined by another industry veteran, namely Sol Waksman, who is the founder and President of Barclayhedge.  So let me set up this question, the same question (more or less) to you Sol. My questions would be, as far as I’m aware, and you probably know this even better than I do, but, as far as I am aware of, there has never been a white paper written that does not conclude that adding managed futures or trend following to a portfolio of stocks and bonds does not improve the risk and return profile.  So, with that in mind, why do you think that still so relatively few investors, on a global scale, have added these strategies to their portfolio?  Sol I think that when you look at stocks and bonds, you have a very strong argument for why stocks should go up over time and for the safety of bonds. These arguments, they are almost taken as a matter of faith. I don’t say that to denigrate the arguments. The arguments are excellent. They’re absolutely excellent.   When an investor is involved in managed futures, and they now go through those periods of inevitable underperformance,