Atlantic Monthly documents the current trend of using technology to outsmart the stock markets.

Seriously, anyone, quant or not, with a shred of intellectual honesty recognizes that there is some chance their historical success is just luck.

and…

“Diversification is famously called the only free lunch in finance. Some people … don’t fully believe in that. I do. And when you see a free lunch, the rational thing to do is eat it.” In essence, AQR is betting that markets will revert to the mean, and that investors will act “rationally” once information about individual companies is fully digested.

Essentially, invest in many diverse asset classes, commodities and investment types to garner the most investment benefit. That and fancy robots with lots of wavy arms that push buttons fast-like.

 

 

Advertisements