Stock-Picking Computers

eldavojohn writes "A while ago, Slashdot ran an article on Algorithms used to augment or replace analysts. Today, the NY Times is running an article on stock-picking computers with quotes from the lovable Ray Kurzweil." From the article: "'Investment firms fall over themselves advertising their latest, most esoteric systems,' said Mr. Lo of M.I.T., who was asked by a $20 billion pension fund to design a neural network. He declined after discovering the investors had no real idea how such networks work. 'There are some pretty substantial misconceptions about what these things can and cannot do,' he said. 'As with any black box, if you don't know why it works, you won't realize when it's stopped working. Even a broken watch is right twice a day.'"

Comments

Re:Why?

[proverbialcow]

First you have to get a license for the exotic pet, then you have to import it, then you have get it vaccinated and take out liability insurance in case it throws feces at a passing dignitary.

No, no, no, there's a better way. Get me a case of beer and a copy of the WSJ and a dartboard. I'm at least as random as a monkey after 24 beers.