Institutions Are Packing Some Serious AI Heat
By Greg Madison for Professor Bierman
Hi, everybody! It’s Greg here with you. I hope everyone’s having a great weekend, and folks in the weather’s path (yours truly included) are staying safe out there.
When Professor Bierman first lays his big-picture thesis to you, with words to the effect of “fundamentals don’t matter, data doesn’t matter, algorithms and AI are calling the shots,” it can sound almost wild-eyed, almost like a conspiracy theory.
But then he explains and it makes perfect sense. As it turns out, we’re far from “grassy knoll” territory - Bierman’s assertion is well-supported by the literature and facts.
Once you understand it, it works on a gut level, too: Why would a company which operates at a loss, which makes no discernable product, and whose stock trades at double-X multiples, and which makes consecutive highs… do that? Who’s buying this stuff?
Well, machines, that’s who. They’re buying.
So it’s no secret - not even a little. In fact, the information is there for anyone who cares to look. Wall Street’s biggest players aren’t shy about touting their AI edge. They’re proud of it.
Take a look at what BlackRock has to say about it - all of the AI and algorithmic firepower they can bring to bear. Go on, have a read. It’s impressive… until you realize that, if you’re not leveraging AI, you’re on the losing side of those trades.
With that, I’m going to sign off for the weekend - I’ll be back filling in next week. Have a a great one.
Until then.
Greg Madison
Editorial Director, TheoTrade