AI is changing how investors develop successful strategies

Technology has changed our lives in countless ways — there are more smartphones and other mobile devices in use in the United States and its territories than the entire population of the country, and we are just on the cusp of seeing driverless cars on our roads and highways. As the field of artificial intelligence continues to grow and improve, it too is poised to make radical changes in nearly every industry and sector of business — especially in investing.

Insurance firms and investment banks already use artificial intelligence to automate tasks such as claims processing and contract validation. Investors who understand how AI will reshape and transform the investing landscape can capitalize on this trend and use it to their advantage. Bank of America estimates the global robotics and AI industry will grow to $153 billion by 2020, with $70 billion coming from growth in AI.

Here are several ways AI is already changing the investment world, and what investors can expect in the future.

AI in today’s investment world

Though simplistic by current AI standards, the biggest example of how AI is enabling changes in investing is the rise of robo advisors. First established in 2008 as a means to provide balance to investor assets within target-date funds, robo advisors are now used to perform the basic functions of a financial advisor and enable passive investing at various price levels.

As AI matures, it will also begin to move into active investing due to cheaper computational power and advances in software, hardware, and data storage. It’s becoming feasible to use machines to identify predictors that can be used to create and evaluate profitable strategies.

Lastly, the stock market itself and companies in it are now heavily influenced by sector-leading AI companies. Savvy investors who understand the impact AI will have not only on the investment world but throughout the business world as a whole are looking for industry leaders. This is why companies such as AMD and Nvidia, which produce processors used for AI, are two of the most followed stocks on social investing sites. Other companies that are implementing strong AI plays include Salesforce, Google, Microsoft, Amazon, Facebook, PayPal, and other major tech companies. In fact, 10 of the top 15 followed stocks on social investing sites have a major stake in the future of artificial intelligence (AAPL, TSLA, FB, AMZN, NFLX, AMD, BABA, GOOG, NVDA, and MSFT).

Many public tech companies are also deeply committed to the growth of AI, often buying startups to fuel their own projects. Twitter acquired the startup Whetlab to accelerate efforts to glean insight into how, when, and where users tweet, while Google acquired AI startup DeepMind in 2014 to enhance its own AI activities.

How AI will change investing in next 5 years

At its core, investing is about identifying information to take advantage of market inefficiencies. Historically, this information was gathered from traditional sources: news outlets, company filings, experience, etc. Technological advancements have enabled the ability to capture and understand large volumes of complex and non-standard types of data that surround us on a daily basis, such as location data from cell phone applications and social media content.

We are just scratching the surface of how artificial intelligence will be used for investing. One application that I am most excited about is the opportunity to utilize AI systems to reduce the complexity of alternative data, such as satellite images or content on social media platforms.

Here are two examples:

  1. Computer vision models can translate satellite images of retail store parking lots into revenue estimates. Businesses can use this AI-driven data to make enhanced revenue and operating decisions, as can investors.
  2. AI can parse data from social media platforms. On any given day, more than 150,000 messages are exchanged between users on social investing sites. Some conversation threads are visible to tens of millions of people via financial news services and through social media. Natural language processing models take sequences of messages exchanged on social investing sites and output a value that represents trader mood or sentiment.

AI can transform extremely complex data into the kinds of metrics investors are traditionally comfortable using, which ultimately provides more traders with access to the informational advantage offered by big data. This type of complex analysis has historically only been available to large institutions, but the rise of AI and increases in processing power places this type of analysis into the hands of a greater range of potential investors.

Threatening or evolving wealth management?

AI and machine learning are here to stay, and they will undoubtedly replace the roles of many traditional investment analysts. There are many ways AI outperforms human analysts, and it can adapt to rapidly changing market conditions in mere moments. However, AI also presents new opportunities for finance professionals to thrive — from hedge fund managers to individual retail investors.

Investors who embrace AI and learn how to incorporate it in their decision-making processes are better positioned than their peers to succeed in this new investing landscape. A large number of funds are already practically fully automated, and the use of advanced AI should continue in these systems. Still, I foresee a future in which wealth managers who want to remain active in the investing process will be able to augment their decision making with new AI-driven tools and analysis.

Artificial intelligence will continue to flourish and improve the way retail and institutional investors create and grow wealth. Those who remain on the forefront of these revolutionary technologies are positioned to capitalize on a wide range of new opportunities driven by artificial intelligence.

Ian Rosen is the chief executive officer of StockTwits, a financial communications platform for the investing community. Learn from other stock traders and get new ideas.

SpaceX Just Broke a Record With Their 16th Successful Launch of 2017

In Brief

On October 30, SpaceX launched a Korean satellite into geostationary orbit, successfully completing their 16th mission of 2017. The event doubles SpaceX’s record for launches in a single year, which was previously set at eight.

On October 30, SpaceX sent the Koreasat-5A commercial communications satellite into geostationary orbit. While not a particularly noteworthy event in and of itself, the launch was the company’s 16th of 2017. SpaceX’s record for launches in a single year was previously eight, so that means they’ve already doubled their record. With two months left in 2017, Elon Musk’s space company still has time to add another launch or three to their yearly total.

Conditions for the launch were good, with no adverse weather or technical problems to speak of. The Falcon 9 rocket’s first stage returned to Earth about eight minutes after delivering the satellite to orbit, landing on one of SpaceX’s autonomous barges — “Of Course I Still Love You” – which was stationed in the Atlantic Ocean. Though the rocket was initially covered in flames, those later went out.

This marks the 13th Falcon 9 rocket landing this year, SpaceX’s 15th consecutive successful landing, and the company’s 19th overall.

The Koreasat-5A mission was SpaceX’s 11th commercial launch of 2017. The majority of the company’s activity is now in service of private companies and foreign governments, whereas previously the majority of their work concerned U.S. government agencies, such as NASA and NOAA.

More missions and more clients means more money, and that should help facilitate SpaceX’s far-more ambitious endeavors.

Blue Origin’s Successful Engine Test Fire Puts SpaceX on Notice

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Up until now, the majority of ongoing US-based rocket coverage has focused on SpaceX. There are multiple reasons for that, ranging from the company’s groundbreaking use of reusable rockets to the simple fact that NASA doesn’t currently have a launch vehicle of its own to crow about. Companies like Jeff Bezos’ Blue Origin have rated a distant second or third, if only because they’ve been well behind SpaceX’s overall launch and deployment schedule, with seemingly little chance of catching up.

Blue Origin hasn’t caught up–not yet–but it did demonstrate a major step forward for its own rocket engine yesterday. The Blue Engine 4 (BE-4) has successfully completed a 3-second burn at 50 percent power. These “hot-fire” tests are a milestone for a rocket design, since they demonstrate that the rocket is capable of meeting an appreciable percentage of its rated engine output without exploding or failing in some other fashion.

The test yesterday is also a step forward for Blue Origin’s eventual deployment with the United Launch Alliance (comprised of Lockheed-Martin and Boeing). Beginning in 2002, the ULA’s Atlas V rocket (then operated solely as Lockheed-Martin) relied on a Russian-built RD-180 engine that burns kerosene and liquid oxygen for its first-stage fuel. By 2014, growing national security concerns had made this arrangement less tenable, and ULA went looking for a new partner. It found with in Bezos and Amazon, who signed an agreement to use the BE-4 in ULA’s upcoming Vulcan rocket.

The Vulcan Heavy configuration with all six boosters and the two BE-4 engines visible.

The BE-4 uses liquid oxygen and liquid methane for fuel and is rated for 550,000 lbf (2400 kilonewtons). ULA will deploy two engines per Vulcan, for 1.1 million lbf at sea level. That’s significantly higher than the Atlas V’s RD-180 engine, which is rated for just 860,000 lbf at sea level. Vulcan will also use up to six stretched GEM63 rocket boosters (this new variant is the GEM63XL). Each booster can provide up to 204,000 lbf; combined, the boosters offer even more thrust than the main engine. With a maximum thrust configuration of 2,324,000 lbf, the so-called Vulcan Heavy will be one of the most powerful rockets in the world when it flies (no earlier than 2019).

One of the major features of the BE-4 is its use of liquid natural gas as a fuel rather than kerosene. This allows autogenous pressurization, in which a gaseous fuel is used to pressurize a liquid fuel. LNG leaves no soot byproducts and does not require a separate pressurization system, reducing complexity and weight. In fact, while SpaceX has captured the lion’s share of the attention these last few years, the company has initially relied on gradually improving rather simple rocket designs compared with the BE-4. Bezos’ baby can downthrottle as low as 20 percent , which should make landing the rocket for repeated re-use simpler and more likely to succeed.

For those of you wondering how these rockets compare to NASA’s Senate Space Launch System, the answer is a bit complicated. The SLS Block 1 will be more powerful than either the Falcon Heavy or New Glenn, with the SLS Block 1B boosting up to 105,000 kg to orbit and the SLS Block 2 nearly matching the Saturn V’s throw weight (130,000kg to 140,000kg). These estimates could change somewhat in the future if the engines are tested and found capable of boosting heavier payloads. But NASA’s ability to bring the SLS to the launchpad has been hampered by Congress’ refusal to approve budgets that would allow for realistic mission planning, or pay to keep the vehicle in regular use. That means the SLS might only fly every other year, or even less. This, in turn, drives up maintenance costs as a percentage of total vehicle cost, since there’s non-trivial expense associated with keeping up the hardware and job force required to do this work whether the rocket is flying on a regular basis or not.

Facebook Hashtags Successful or Unsuccessful? – facebook helpline number

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It’s as of now over a month when Facebook authoritatively reported ‘Hashtags’ include (twelfth June 2013) yet it is as yet very little being used. With the happening to Hashtags on Facebook, numerous computerized advertisers anticipated the new component as a danger to Twitter. By one means or another, Twitter is as yet the best with regards to Hashtag Promotion of a brand or an item.

Despite the fact that Facebook is having more clients in India Twitter is having more intuitive TG and subsequently, ‘Hashtag advancement’ is unquestionably more fruitful there. Something else is that utilizing a Hashtag should be possible for a brand or a general client on Facebook yet then Facebook does not give a ‘Pattern’ window where clients can see the most discussed subjects and brands that are contending to bring their image name at the best.

‘Hashtags’ give the office to see exchange under the specific theme yet ‘Patterns’ give the sentiment rivalry among the brand darlings and brands who need to see their item name drifting at the best. Along these lines, it is all the more rousing and energizing; likewise, Hashtags are by one means or another inadequate without Trends. In addition, by and by Facebook Hashtags don’t have weight inclination and investigation supplier where one can know what number of the post sees originated from the hashtag stream. Facebook is having greatest portable clients and shockingly, this component is by and by inaccessible for them. One can’t scan for hashtags on the versatile application and distributed hashtags in notices are additionally not interactive from portable variants. Along these lines, as I would see it, Facebook Hashtags needs bunches of change keeping in mind the end goal to be a win.

In spite of the fact that Hashtags are likewise running on Instagram, Pinterest, and Google+ yet it is related with Twitter in the brains of general clients. Obviously, there is one incredible favorable position of happening to Hashtags on Facebook that coordinated correspondence can be conveyed advantageously on all the computerized stages by a Brand.

In any case, Facebook has replicated many highlights of Twitter and other informal organizations in past like Verified Account, Follow Feature, List Feature (Google+) and Public Posts and every one of the highlights certainly helped in enhancing the stage. Be that as it may, Hashtag Feature on Facebook needs numerous changes for running effective advancement battles