The funny thing about equity markets and why AI will never rule equities

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The funny thing about equity markets is that good information is sometimes reflected in stock prices as good information and the stocks take off.  At other times, similar good information is perceived as bad information and the stock market tanks.

Similarly, bad information sometimes bumps prices down, but sometimes it bumps them up.

Since the relationship of information to outcomes is so mercurial, there is no hard, fast, steady relationship to model in AI.

If you stay around the party long enough, you'll see a lot of this.  Because the crowd is subject to herding, these types of odd behaviors can create opportunities for the astute investor.

Be smart, be well-read, be aware and be successful.

Copyright 2017 Mark T. McLaren