How to Predict Returns With Machine Learning and AI

Show from 7/21/23 Prof. Siegel calls in live from his cruise to share his big takes on today's current market. He explains to us his shift of opinion towards the Feds and what he is looking into to suggest market recovery (13:25). Alejandro starts by telling us what he researches and studies at the University of Florida. He explains his use of AI to calculate rates and how it could be used by companies to mitigate risks. Through his research, he explains his beliefs on using many different signals to attain the data you need from machine learning. He elaborates on how performance factors can greatly affect outcomes of these data sets. The group discusses the results of testing Chat GPT’s ability to calculate these data sets and whether it’s a useful tool for market predictions. He discusses the future research and advancements in using AI models to add in finance decisions. Guest: Alejandro Lopez-Lira is an Assistant professor of Finance at Warrington College of Business, University of Florida. He holds a PhD in Finance from the Wharton School, University of Pennsylvania. His research covers topics in Empirical Asset Pricing, Machine Learning and Textual Analysis. Learn more at: https://alejandrolopezlira.site/ Follow Alejandro on Twitter: @alejandroll10 Chris Gannatti is Head of Research at WisdomTree Europe Follow him on Twitter: @CGannatti