Big Data and Big Money Are on a Collision Course

October 16, 2017

A recent Forbes article has started us thinking about the similarities between long-haul truckers and Wall Street traders. Really! The editorial penned by JP Morgan, “Informing Investment Decisions Using Machine Learning and Artificial Intelligence,” showcases the many ways in which investing is about to be overrun with big data machines. Depending on your stance, it is either thrilling or frightening.

The story claims:

Big data and machine learning have the potential to profoundly change the investment landscape. As the quantity and the access to data available have grown, many investors continue to evaluate how they can leverage data analysis to make more informed investment decisions. Investment managers who are willing to learn and to adopt new technologies will likely have an edge.

Sounds an awful lot like the news we have been reading recently about how almost two million truck drivers could be out of work in the next decade thanks to self-driving cars. If you have money in trucking, the amount saved is amazing, but if that’s how you make your living things have suddenly become chilly. Sounds like the future of Wall Street, according to this story.

It continues:

Big data and machine learning strategies are already eroding some of the advantage of fundamental analysts, equity long-short managers and macro investors, and systematic strategies will increasingly adopt machine learning tools and methods.

If you ask us, it’s not a matter of if but when. Nobody wants to lose their job due to efficiency, but it’s pretty much impossible to stop. Money talks and saving money talks loudest to companies and business owners, like investment firms.

Patrick Roland, October 16, 2017

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