Artificial Intelligence v Sophisticated Analytics
QUESTION:
Socrates vs Aladdin
I would like to start by saying thank you for all the knowledge in an altruist way you provide to the world. Reading your blog is part of my daily activities for years now. And what i difference it has made in opening my mind.
I would like if you could comment in which way is different Socrates’ capabilities to Blackrock Aladdin. Since they state exactly what Socrates stands for, unbiased worldwide analysis.
On another topic, read a far fetch theory the other day, that are about 8 to 8.5k people worldwide that control the BIS, making them the lords of all this chaos and nonsense of economic imbalances we live in (life of constant debt). If you find convenient, could you please elaborate on your words of knowledge on the topic.
Many thanks and best regards
PG
ANSWER: Blackrock Aladdin® is only an operating system for investment managers. It does provide information which is the typical standard money management tool. It involves the standard array of sophisticated risk analytics used in portfolio management. It is not Artificial Intelligence that writes an analysis on its own. It is a platform with tools where the manager must still make informed decision-making and use effective risk management.
Here is the screen on the NASDAQ. What you see is a number of tools you can look at. The Global Market Watch pinpointed the 18th as a “Potential Key High,” which was based upon true AI. The difference is the computer is providing its conclusion. The rest of the tools are there for your personal informed decision-making. Then Socrates writes a report on each level of the market as well and provides a summary overview. This, again, is AI.
Providing an algorithm that is a tool like a stochastic is standard in the world. We have the standard risk models you can look at as well. All of that is NOT Artificial Intelligence for you are making the decision based upon a standard tool. The tool is not telling you its conclusion. There is nothing out there that writes a report after analyzing the entire world.
As far as the BIS is concerned, that is just a conspiracy theory. Even the Kenneth Rogoff told Bloomberg: “A joke, which I have been telling since the last meeting in Davos, culminates in the fact that the predictions made in Davos are always wrong… No matter how unlikely, the most likely event is the one that is the opposite of the Davos consensus.” In fact, he may have said it was a joke, but it is true. They have never made a single forecast that was correct at any of these gatherings. They lack the tools of the global economy and ONLY someone who has actually traded in the markets can possibly understand the true capital flows.
