“A theory should be as simple as possible, but no simpler.” If one applies Albert Einstein’s words to a colourful basket of theses from leading US academics about the future of investing, it could look like this:

Andrew Lo of MIT’s Sloan School of Management provides the foundation of the theory. For one of America’s current academic superstars, it is pretty clear how the future must look: “We need to solve investors’ biggest problem – uncertain outcomes of risks and returns.”