Artificial Intelligence Sees Market Dimensions Far Beyond that of the Human Brain

Legend Advisory Corp. announced today that they are now using an Asset Allocation Neural Network (AANN) to forecast the strength of global asset classes.

New Breakthrough Unveiled in Investment Management

"AANN analyzes 32 customized inputs, each of which is       compressed from huge volumes of financial data, in order to rank the       relative strength of seven asset classes: large and small capitalization       domestic stocks, investment grade and high-yield domestic debt,       international debt and equity, and cash. Her recommendations are then       fed into a separate optimization program, which creates weightings to       suit the individual risk tolerances of Legend’s       model portfolios. Yet another set of screens picks out the appropriate       mix of mutual funds to fill the designated asset allocations."

This is a great example of how neural nets are being used in society to solve everyday business problems.  Neural nets are also used by banking companies to recognize changes in spending to detect credit card fraud.  This neural net with only 32 inputs is still rather small and basic, but this is where things start.  Humans can interpret millions of  inputs in our neural electrochemical brains. It wont be long before 32 inputs are considered prehistoric, kinda like the 1 megabyte harddrive.