Quants, Decision-Making and Big Data

The word “quants” is associated with math geeks (hey I’m not one but I do have a B. Math from University of Waterloo) who have turned the investment community in dramatic new directions. Many of them are hedge fund billionaires … again another minor difference I have with them 🙂 

They use math to predict where the market is going. Then computers automatically make trades, usually buying or selling huge quantities of investments. 

They often identify investment insights by discovering statistical correlations between vast quantities of big data from the Internet as well as other sources such as traditional data bases. Their ground-breaking approach is to care more about data correlation and huge uncleansed quantities of data and less about the accuracy of the data.  

However quants were major contributors to emptying bank accounts, ruining lives and bringing down corporations. Why?  

Because making investment decisions via statistical correlations falls flat on its face when the “perfect storm” of market conditions occur as they did in the financial markets in 2007/2008.  

The computers, slaves to the investment sell formulae the quants programmed, sold sold sold. Prices dropped. Another reason why yours truly cannot afford a sports car.  🙂  

I hope to see you at my upcoming talk at the University of Toronto “How to Make Better Decisions by Yourself and with Your Team”

https://m360.soc.pmi.on.ca/ViewEvent.aspx?id=98280&instance=0

 

Be a ripple in the pond. Make our world a better place!!! 

Do the right thing! Pay it forward. Together, let’s make a positive difference. 

“To give back and be given is to feel the sun from both sides” … Harry Mingail

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