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One possibly interesting consequence of this is that companies that want to optimize their stock value may now try and find what factors the financial algorithm
by cjblomqvist 7y ago
One possibly interesting consequence of this is that companies that want to optimize their stock value may now try and find what factors the financial algorithms are looking for and optimize their business based on that. Might be an opportunity for some creative upper management people?
- logicchains 7y agoExecutives were already doing this for the factors human investors look at (hence the "Wall St. driven short-termism" complaints).
- cjblomqvist 7y agoAbsolutely, I guess what I'm saying is that this might bring about new types of factors to look for - meaning whole new categories of strategies.
- logicchains 7y agoThey're still going to be factors that a human already thought was relevant to making investment decisions. Machine learning data pipelines don't write themselves.
- Havoc 7y ago>what factors the financial algorithms are looking for and optimize Except you've already got algo's trying to outguess each other. It's a bit of an arms race with little space left for mortals