I wonder where the added value lies in the future. With AI, analysing/collection of data will be much easier. I don't think programming and data modelling heroes are needed anymore. It's probably more about having ideas about what I want to look at in this infinite data jungle. Jim Simons didn't care what pattern and why it worked, as long as he found one. Or does the AI find these patterns and I don't need any wild ideas? What is your opinion on this? Thanks!
I think AI will definitely be better at finding patterns, but as usual, AI is a tool. I think the quants will be better at using AI than the non-quants, which means they will retain an advantage, though this advantage of quants vs. non-quants will likely shrink.
I have to give this one a Teutonic Jein. My personal experience with hard-boiled scientists such as physicists is they say, "all the data indicates buy-and-hold is the only useful strategy, all things considered". They usually have a well-paying job and don't spend too much time on going the extra mile, financially. Since they're nerds they're not even that interested in money.
It's interesting to me that such folks have a kind of inherent optimism. They assume capitalism will continue to exist in its present form, and provide the goods. (They're probably right). Nonetheless one remembers Billy Wilder who said, back in the 1930s, there were two kinds of Jews in Germany -- the optimists and the pessimists. The optimists died.
In contrast, several bankers I know (and don't really like) have an après moi la deluge attitude, focussed on taking the money and then gettting outta Dodge, because they think everything will soon fall to pieces.
Largely agree. As a physicist myself, I am very reluctant to make outrageous forecasts. I go with the most likely outcome, which often leads me to boring positions like "index tracking works best (except in small caps and emerging markets, where efficiency may be large enough to warrant active investing)." As you can see, we nerds are also really bad at sticker slogans or simple recommendations :-)
Plus, I thought Billy wilder said, there were two kinds of Jews in Germany - the optimistis and the pessimists. The pessimists have pools in Beverly Hills.
I wonder where the added value lies in the future. With AI, analysing/collection of data will be much easier. I don't think programming and data modelling heroes are needed anymore. It's probably more about having ideas about what I want to look at in this infinite data jungle. Jim Simons didn't care what pattern and why it worked, as long as he found one. Or does the AI find these patterns and I don't need any wild ideas? What is your opinion on this? Thanks!
I think AI will definitely be better at finding patterns, but as usual, AI is a tool. I think the quants will be better at using AI than the non-quants, which means they will retain an advantage, though this advantage of quants vs. non-quants will likely shrink.
I have to give this one a Teutonic Jein. My personal experience with hard-boiled scientists such as physicists is they say, "all the data indicates buy-and-hold is the only useful strategy, all things considered". They usually have a well-paying job and don't spend too much time on going the extra mile, financially. Since they're nerds they're not even that interested in money.
It's interesting to me that such folks have a kind of inherent optimism. They assume capitalism will continue to exist in its present form, and provide the goods. (They're probably right). Nonetheless one remembers Billy Wilder who said, back in the 1930s, there were two kinds of Jews in Germany -- the optimists and the pessimists. The optimists died.
In contrast, several bankers I know (and don't really like) have an après moi la deluge attitude, focussed on taking the money and then gettting outta Dodge, because they think everything will soon fall to pieces.
Largely agree. As a physicist myself, I am very reluctant to make outrageous forecasts. I go with the most likely outcome, which often leads me to boring positions like "index tracking works best (except in small caps and emerging markets, where efficiency may be large enough to warrant active investing)." As you can see, we nerds are also really bad at sticker slogans or simple recommendations :-)
Plus, I thought Billy wilder said, there were two kinds of Jews in Germany - the optimistis and the pessimists. The pessimists have pools in Beverly Hills.