AlphaGo, an artificially intelligent (AI) software program, defeated the world champion of an ancient board game called Go on March 15, 2016. The game is immensely complex, with a total combination of possible moves numbering several hundred orders of magnitude more than the number of atoms in the universe. Winning the series four-to-one, AlphaGo’s victory showcased significant advances in AI’s ability to recognise and learn obscure patterns, and adapt strategies.
If it sometimes feels like your boss or management are watching you like Big Brother, you may not be far wrong. Technology is increasingly allowing companies of all types to more closely monitor what their staff are doing. Tesco, for example, uses electronic armbands to track the movements of stock pickers in its warehouses in Ireland.
It has been a whirlwind year for the stock market amid the presidential election, interest-rate increases and the Dow Jones Industrial Average’s climb to the 20000 mark. And there has been no shortage of advice on what to do and what to ignore along the way. Our panel on The Wall Street Journal’s Experts blog offered their take on a variety of investing topics–from IRA rollovers to how to get in on the podcast craze. You can read what they had to say throughout the year here. And below are five of the most-popular investing-related Experts posts of 2016.
Andrew Lo, the MIT professor who recently proposed creating a megafund to finance a cure for cancer, has another way for the financial services community to help eradicate seemingly intractable diseases. Lo was the keynote speaker at a data science conference put on by the consulting group Mass Insight last Friday. The purpose of the conference was to explore how Massachusetts could become a leader in Big Data and machine learning. It brought together everyone from bank executives to venture capitalists to government officials at the Federal Reserve Bank of Boston.
The president-elect has been happily moving stocks via Twitter since even before the election. Twitter, it turns out, can also tell investors what the market will do next, at least on specific days. With Federal Reserve officials set to gather this week for their final policy meeting of the year, research has shown there might be value in combing through social-media posts before Fed days to gauge how stocks might react.
Die Zeit, da man sich in Österreich mit Hedgefonds oder Managed-Futures-Produkten an normal verdienende Privatkunden wenden konnte, ist lange vorbei. Vielfach enttäuschte Anleger und strengere Regularien gestalten jeden Neuzugang im Massengeschäft schwierig bis unmöglich. Hinzu kommt, dass Trendfolgestrategien seit der Finanzkrise relativ schwach abgeschnitten haben, weshalb das Interesse daran stark nachgelassen hat. Wer also heute mit Alternative-Investment-Konzepten startet, kann sich allenfalls an Vermögensverwalter, Dachfondsmanager oder Family Offices wenden, die sich darüber im Klaren sind, dass der Bullenmarkt bei Aktien nicht ewig weiterlaufen wird.
Professor Andrew Lo of the Massachusetts Institute of Technology (MIT) says he wants to be like Harvey Lodish and help save the life of a relative one day. Lodish, a molecular and cell biologist at MIT, helped develop a drug to treat a rare genetic disorder known as Gaucher disease. Little did Lodish know at the time that later his grandson would be diagnosed with this disorder and Lodish’s pioneering work would save his grandson’s life. Lo’s goal may seem lofty considering he is a financial economist, not a doctor or a scientist. Like many of us, he has watched helpless as family members and friends are diagnosed with cancer. But sitting in the waiting room of a doctor’s office one day, Lo decided to follow in Harvey Lodish’s footsteps and take the first step towards saving a life.
Patients with a rare, chronic disease can find themselves in a conundrum when seeking treatment: Researchers can’t find enough patients to enroll in a statistically rigorous clinical trial and there is uncertainty in the regulatory path. Frustrated by the lack of treatment options on the market, patients may be willing to accept a certain level of risk that device manufacturers normally shy away from.
Nowadays, it’s a rare selloff that isn’t blamed on the growing heft of a strategy called risk parity. But to a 52-year-old quant who helped develop it, the problem isn’t that risk parity is too big, but too small. From his office on Boston Harbor, Edward Qian of PanAgora Asset Management has made it his life’s work trying to prove that the strategy — more popularly associated with Ray Dalio’s Bridgewater Associates — isn’t just a tool for divvying up stocks and bonds in hedge funds. Nor is it the destructive force that critics say could ruin markets. Pointing to three small photos of star clusters propped up at the edge of his desk, Qian says its principles are to investing what gravity is to the universe.
Professionals from the finance and technology sectors convened in New York City on 16 September to learn about how recent technology innovations are transforming banking and the stock market as well as credit cards, loans, and other financial products and services. The theme of the event, hosted by MIT Sloan, was “FinTech (Financial Technology) and the Disruption of Finance.” The speakers made it clear that machine learning and other new technologies are certain to bring big changes to the financial industry.