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Quant AI Picks Stocks Better Than Humans
Mr_Blank writes with this excerpt from an article at MIT's Technology Review:
"The ability to predict the stock market is, as any Wall Street quantitative trader (or quant) will tell you, a license to print money. So it should be of no small interest to anyone who likes money that a new system that works in a radically different way than previous automated trading schemes appears to be able to beat Wall Street's best quantitative mutual funds at their own game. It's called the Arizona Financial Text system, or AZFinText, and it works by ingesting large quantities of financial news stories (in initial tests, from Yahoo Finance) along with minute-by-minute stock price data, and then using the former to figure out how to predict the latter. Then it buys, or shorts, every stock it believes will move more than 1% of its current price in the next 20 minutes — and it never holds a stock for longer."
You should read up on the free market. What we have is not a free market. All the regulations you support are there to attempt to fix problems caused by yet other regulations.
You are misinformed. Regulation and its subsequent abuses lead give a false sense of security and entitlement, which then makes the misfortunes worse. It is a fantasy to try to make markets into safe, fair, and predictable money-printing machines where no one is harmed, or where everyone is harmed equally. You can regulate endlessly until you finally kill the market you are observing and gradually make all of the participants lives miserable. The real market will move elsewhere. Read some history.
No, the wealth would spread around to anyone who was willing to take a risk and was successful. Almost every single corrupt company has been caused by the government. All regulations do is make companies create ways of getting around it and hoarding wealth. It makes a whole lot more sense in the free market to spend your profit investing and expanding your company thus creating new jobs and technology, however, such things could get your company labeled a "monopoly" and broken up, so its a lot more profitable then for them to hoard cash and then spend it later.
Look at the railroad companies, had The US government not gave them tons of land if they would expand westward, we would have had competition, not monopolies. Look at any technology "monopoly" they wouldn't have had it had it not been for large government spending buying their product and pointless patents and abusive copyright that the government should have abolished long ago.
Heck, even look at BP where the government interfered in the free market and artificially capped their liability at $75 million, and because of this artificial interference we had the BP oil spill because in the profit/loss ratio it made sense to be careless because you could easily take the $75 million hit.
Taxation is legalized theft, no more, no less.