Machine Learning In Investing

By Tim NortonPosted on March 18, 2019August 8, 2019Cat investing, Macro Economic, Portfolio Modeling, Price prediction, Risk Avoidance, TechnologyLeave a comment

Machine learning can be used in investing in a variety of ways. This article seeks to show a few of those and describe the basics. Hedge funds have tried for years to use machine learning (or AI) in their funds. Moving on to today, all quantitative funds use some form of machine learning. Some hedge… Read More »

Machine Learning in Finance and Investing

By Tim NortonPosted on February 26, 2019Cat investing, Portfolio Modeling, Risk Avoidance, Technology2 Comments

The first time I heard the term ‘Artificial Intelligence’ was in the 1980s, when my dad worked for Digital Equipment Corporation, in the Silicon Valley of the East (Massachusetts). And yes they made computer chips from Silicon. In the 80’s Artificial Intelligence referred to, basically, complex logical structures, with each decision leading to a tree… Read More »

How To Best Evaluate A Portfolio

By Tim NortonPosted on February 13, 2019Cat investing, Portfolio Modeling, Risk Avoidance, TechnologyLeave a comment

Recently I saw an article about Monte Carlo Analysis, which (as you know) is a way to evaluate a person’s ability to meet their future income needs. Using a portfolio of securities or asset allocations it runs through as many rolling periods as available in the data, to come up with a probability of meeting… Read More »

A Better Portfolio Optimization Method

By Tim NortonPosted on February 5, 2019May 23, 2019Cat investing, Portfolio Modeling, Risk Avoidance, Technology7 Comments

You may have heard of Markowitz’s Critical Line Algorithm, or CLA. CLA was Markowitz’s attempt to solve the problem of portfolio optimization using quadratic math. For a couple reasons is was an ingenious invention. But it also has its problems. The problem with CLA is that it demonstrates large changes in the portfolio with small… Read More »