Being A Genius No Guarantee Of Good Performance In The Stock Market
from the turning-brilliance-into-wealth dept
There's been a lot of interest lately in ways to automate the process of analyzing and predicting the behavior of stocks in the stock market. Amidst an ongoing explosion in the quantity of information, there's good reason to be interested in any tools that help investors separate signal from noise and identify patterns. The latest company to get involved in this space is one headed up by famed inventor and technologist Ray Kurzweil, who many people consider to be a genius. The company promises to employ so-called quant techniques, which involve advanced mathematics, to identify patterns in the market and help investors pick stocks. It's not denigrating Kurzweil at all to suggest that people might want to tread cautiously on this one. Being a genius doesn't necessarily equate with being a great stock picker. Long Term Capital Management, which suffered the worst hedge fund implosion of all time, was headed by multiple Nobel Prize winners. Because of the firms' rather impressive pedigree, many simply assumed that the firm had cracked the code of the market and could do no wrong. Ultimately, Kurzweil's company will only be measured on its ability to turn up winning investments, not on his name or his past feats.