As a quant, I am convinced that AI will not replace me, sorry, will not replace quants. There is no reason to believe these tools will be any better than a human looking at a machine doing quant stuff. Nothing to see here, moving on...
By saying economists are worse analysts you mean from a bachelor level right? Most economists with Phd have being trained hard in econometrics which is very data intensive, and that there are those who say that econometrics is the original data science and have created causal analysis way earlier than statisticians.
And yet, my experience with econometrics and PhD level economy economists is that they are nowhere near as good as a physicist or data scientist with a master's degree. In fact—and I am biased as someone who has studied, used, and taught both econometrics and data science/physics—econometrics is useless in investing. It has much less forecasting power than most methods physics or data sciences use. Sorry, no offence intended. It's just my experience.
No offence taken, i have already seem this remark from others proeminent quants as well. Maybe i would have if i intended to be a quant but my interest in finance is more of an intellectual curiosity. I just wonder why, since the mathematical/statistical treatment is very strong in economics. Is it because mathematicians, physicists and others don´t have econ theory so they have an "agnostic" view of markets or is it simply because economists quantitative methods are more suited for other areas than financial markets?
I think the latter is true. Economists models are great at modelling and explaining the mechanisms that lead to market developments. But explaining after the fact is not what you need in investing. What you need is forecasting. And this is where econometric models break down. And I think most academic economists simply are not that interested in improving forecasts and more interested in explaining the world. It's a legitimate enterprise (explaining the world), but just not that relevant for investmentt practitioners (sorry, I am oversimplifying here, but I hope you get my point).
Love it . Thanks for sharing
If quants make that improvement in profitability, imagine what AI will do. It may even make IFA performance equal to that of private investors.
As a quant, I am convinced that AI will not replace me, sorry, will not replace quants. There is no reason to believe these tools will be any better than a human looking at a machine doing quant stuff. Nothing to see here, moving on...
By saying economists are worse analysts you mean from a bachelor level right? Most economists with Phd have being trained hard in econometrics which is very data intensive, and that there are those who say that econometrics is the original data science and have created causal analysis way earlier than statisticians.
And yet, my experience with econometrics and PhD level economy economists is that they are nowhere near as good as a physicist or data scientist with a master's degree. In fact—and I am biased as someone who has studied, used, and taught both econometrics and data science/physics—econometrics is useless in investing. It has much less forecasting power than most methods physics or data sciences use. Sorry, no offence intended. It's just my experience.
No offence taken, i have already seem this remark from others proeminent quants as well. Maybe i would have if i intended to be a quant but my interest in finance is more of an intellectual curiosity. I just wonder why, since the mathematical/statistical treatment is very strong in economics. Is it because mathematicians, physicists and others don´t have econ theory so they have an "agnostic" view of markets or is it simply because economists quantitative methods are more suited for other areas than financial markets?
I think the latter is true. Economists models are great at modelling and explaining the mechanisms that lead to market developments. But explaining after the fact is not what you need in investing. What you need is forecasting. And this is where econometric models break down. And I think most academic economists simply are not that interested in improving forecasts and more interested in explaining the world. It's a legitimate enterprise (explaining the world), but just not that relevant for investmentt practitioners (sorry, I am oversimplifying here, but I hope you get my point).