Posts Tagged ‘stock picking’

Investment Decisions – Brains Vs. Computers; Which is Better?

June 13, 2017

The two points of view represented below are both well reasoned, conflicting, and cogent, but can they both be right?  The experts currently disagree, but maybe one day the question will be answered definitively.  For now, it makes for an interesting debate, and only time will tell who is right.  Today’s answer may not be tomorrow’s answer.

A key question is how much data does one need in order to make smart investment decisions.  Those who believe best decisions come from analyzing tons of data lean towards computer algorithms, while those who think smart evaluations don’t require looking at every piece of data lean toward human understanding and interpretation.

The term “quants,” refers to those quantitative analysts who crunch the number and are more reliant on computers and algorithms.

Why Brains Are More Reliable Than Machines – WSJ

Quants_ Best Strategy Is From the 17th Century – WSJ