Morgan Stanley used AI to study its own analysts and figured out how to beat the market

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Morgan Stanley now has a deep learning and artificial intelligence model to analyst sentiment in brokerge reports. And it's beating the market.

Morgan Stanley's new model generates a score based on how certain the program is that the analyst is positive or negative on the stock.

For each of the brokerage's 41,758 company research reports from January 2013 to May 2019, Morgan Stanley's model produces a score reflecting how confident the artificial intelligence was that the analyst was bullish or bearish on the stock. "Overlaying revised price targets helped us focus on critical market-moving events, while providing a sufficient number of opportunities for entering trades," Huang added.

Analysts can often reveal their true feelings toward a stock simply though their choice of words and Morgan Stanley's work now offers proof. Phrases like "great things," "definitely a plus" and "much better" can be read and loosely understood as nearly always positive by a deep learning platform. And that, in turn, can be leveraged, Huang wrote.to illustrate his point.

 

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Quantitative Meta Strategies MorganStanley Luliia_S lopezdeprado

Erm...just buy bitcoin?

That thought had crossed my mind yrs ago, Then all those analyst on stock quotes - financial news page gone, just like that. Just before I was going analyze the analysts, See who was right more often. Heard about those layoffs yrs ago, probably same analysts

I bet if I worked for MS as a trader and the AI studied me.and my Texts its would know nothing of what I know think or really See The stock or indicie for Reason Is I speak Setherish And. AI. Doesn't know the language Humans are easy AI targets Ussualy

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There's something wrong with this rally in the stock market, JP Morgan saysUnderneath the impressive market rally is a trend that doesn't seem quite right, according to J.P. Morgan. Send a thank you note to feds. Bullard and Powell sealed the deal for markets by their no 50 bps cut comment. Now we won’t have a rally. No worries folks it’s just another day of computerized organized crime on WS, they have stealing $ down to a science, be patient they eventually give it back lol cnbc and other fake news carnival barkers just micromanage the daily scam with hopes & fears headlines, hopes today. Pumpin people off the sidelines, before dropping the hammer. Imho
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