"We have reached the third degree where we devote our intelligences to anticipating what average opinion expects the average opinion to be. And there are some, I believe, who practice the fourth, fifth and higher degrees."John Maynard Keynes discussed stock market speculation as a sort twisted beauty contest in Chapter 12 of The General Theory of Employment, Interest and Money written in 1936.
The makers of Artificial Intelligence software for investing have to clearly decide (I believe) whether they want their software to take part in this contest winning as much as possible in the short term or act as a long term value investor not trying to predict short term market movements.
Comments, questions or E-mails welcome: ajbrenninkmeijer@gmail.com
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