An-E (pronounced Annie) is a powerful AI.
She can’t predict the future, but she can help you earn more returns on your investments — all while reducing risk.
It’s as close as possible to having tomorrow’s newspaper.
As you know, every public company has hundreds of data points related to its business and its stock.
There are annual earnings, quarterly earnings, net profits, gross profits, sales, P/E, return on equity, tangible assets, stock price momentum, trading volume and relative strength, just to name a few.
But which of those data points are proven — beyond a shadow of a doubt — to have real-world, profit-producing predictive power?
Is a low P/E the best predictor of future stock returns?
Is blazing sales growth the best predictor of future stock returns?
Is positive stock price momentum the best predictor of future stock returns?
Or is it a combination of factors?
An-E answers all these questions for you.
Now, you may have some reservations about letting an algorithm pick your stocks.
I get it.
But AI is already entrenched into so many industries, and what it can do just keeps on growing as AI “learns” and adapts.
This technology has also been around for a while now. In fact, here are 10 things you probably didn’t know that AI could do…
10 Incredible AI Feats
ChatGPT and other AI-powered programs can write novels, screenplays, Ph.D. dissertations and research papers … all in a way that is virtually indistinguishable from humans.
But the list of ways AI has changed the way we live is longer than you might think.
10 AI Feats:
- AI-powered data analytics is revolutionizing pro sports. When you watch an NFL game, they have probabilities and stats all over the place.
- The Boston Red Sox finally won the World Series in 2004 because they used data analytics to field a winning team. The Chicago Cubs broke a long World Series drought with data analytics as well.
- In 1997, the artificial intelligence program Deep Blue defeated the world’s best chess player.
- In 2016, an AI program defeated a world-class Go player. (Go is much more complicated than chess, so the victory was a major milestone in computer history.)
- AI can now beat the best cancer doctors at spotting cancer on X-rays.
- Uber uses AI to dispatch drivers and link them with customers.
- Amazon uses AI to recommend potential purchases to you.
- Facebook uses AI to arrange and customize its newsfeeds.
- Dating sites like Match.com use AI to help people find potential soulmates.
- Health care firms are using AI to scan DNA, blood and other test results to spot problems with greater accuracy than human experts.
- Recruiting firms are using AI to sift through resumes and job applications and recommend the best candidates. No humans needed.
Right now, the AI revolution is here. And you have a once-in-a-lifetime opportunity.
How Powerful Is AI Really?
At its core, AI is simply just really powerful software running on really powerful computers.
If you’ve paid attention to the biggest tech and business trends of the past 30 years, you know why that is such a big, big deal.
Over the past 30 years, software has massively improved our ability to collect, analyze and act on information. It has allowed us to make a quantum leap in human prosperity and efficiency.
Efficiency, Productivity, Accuracy
A great software program can help you make smart business decisions, find travel deals, talk to loved ones and get a cheap ride home.
Software has massively improved our ability to communicate, share information, transact, gather and analyze data.
Health care, education, transportation, manufacturing, energy production, food production, retail, banking — you name it. Software programs have allowed us to do it much more efficiently.
For example, one person running an Excel spreadsheet on a computer can do the work of hundreds of accountants from days past.
One person running payroll software on a computer can do the work of hundreds of back-office workers from days past.
One person running logistics software on a computer can do the work of hundreds of railroad managers from days past.
Think of all the software-based products and services that bring us joy or save us time, money and frustration: Google, Microsoft Word, Uber, Facebook, OpenTable, Expedia, Excel, Waymo, PayPal, DocuSign, E-Trade, etc.
The list of things that software does better and faster than us — saving us tons of time, frustration and headaches — goes on for miles.
This brings me to one of the biggest AI areas you might not know about — the financial markets.
The Power of AI in Finance
There’s no bigger, more lucrative set of data than the history of U.S. stock prices and corporate financial statements. All this information would fill libraries if it were printed on paper.
Fortunately, our ability to understand and act on that information has skyrocketed over the past 30 years.
This is because, in the past 30 years, the cost of computing power has plummeted — while computing power itself has skyrocketed.
For example: In 1996, the ASCI Red was the first computer to reach the speed of 1 teraflop. Reaching this speed earned ASCI Red the prestigious title of “world’s fastest computer.”
ASCI Red occupied a tennis court-sized amount of office space and cost $55 million to make.
Just 10 years after ASCI Red went into service, Sony released its PlayStation 3 video game console. It had almost twice the computational power as ASCI Red … and cost less than 1% to make.
Plus, the PlayStation 3 could fit in a backpack.
This is one of my favorite ways to prove an important point: Computers are advancing in speed and power at a stunning rate.
Thanks to these huge jumps in computing power, we can now perform amazingly complicated analytical projects for ridiculously low prices, which has revolutionized our understanding of the world.
Thanks to low-cost supercomputers, an analytical project that took one month to complete in 1996 can be performed today in less than one minute … and at less than 1% of the cost.
Hugely expensive data analysis projects that were only in the realm of governments and large corporations can now be performed by a teenager in his parents’ basement at essentially no cost.
The massive increase in computing power now allows us to gather, record and monitor trillions of data points, signs and clues from all walks of life — and then determine exactly what they mean.
We’re using this new technology to uncover hidden correlations, secret relationships and signals in the data.
We’re finding meaningful “cause and effect” relationships where in the past we only found meaningless noise.
And the incredible research team at TradeSmith, one of world’s leading investment data analytics firms, has created a new AI software than sort through financial data better than a human expert.
TradeSmith & “Project An-E”
TradeSmith employs a staff of 36 data scientists, software engineers and investment analysts who develop and maintain their investment software and market analysis algorithms.
Its team literally has hundreds of years of collective experience in the software development and data science fields.
So it’s no surprise it developed deep artificial intelligence knowledge years ago. It has been using it for years to design strategies that help its customers beat the market.
Its market-crushing, world-beating investment analysis programs? Those employ AI.
Put differently, the folks at TradeSmith were AI experts before AI was cool.
As a company that has integrated AI into its systems for years, my friends at TradeSmith can tell you that the hype around AI and next-generation data analytics is justified.
With this incredible computing power and AI at our fingertips, TradeSmith embarked on the most important research projects of their history … one that could help you make much bigger stock market returns than you’re making now, while taking less risk.
And that’s how I got to know An-E.
With the help of powerful computers, TradeSmith created An-E with a simple goal in mind: Determine the attributes of stocks most likely to go up in the near future.
They wanted to find what really works in the stock market.
They brought no preconceived notions to the project. No biases. No wishful thinking. No egos to defend. No past stances to justify.
They just let the data, and the AI analyzing the data, do the talking and answer the questions:
- What stock factors have the most predictive power?
- What type of stock-picking system will give us the greatest profit-producing edge?
- What is the closest thing to having tomorrow’s stock tables in our hands?
Now, let me be crystal clear. I’m NOT talking about predicting the future.
I’ll be the first to tell you that it’s impossible to predict the future — and TradeSmith CEO, my friend Keith Kaplan agrees with me.
With Project An-E, Keith and his team look for the closest thing to it.
They looked for an “edge” that you could exploit over and over and over again.
Start Investing Smarter With AI
On Tuesday, July 25, at 8 p.m. ET, Keith and I are hosting a live special event where we unveil Project An-E. We’re going to talk a lot about artificial intelligence, and how Project An-E can work for you.
What we’ve found is incredible. It could help you reach your financial goals and achieve life-changing wealth over the next few years.
If you haven’t already, sign up here! You’re not going to want to miss out on this.
I can’t wait to see you there!
Until then, see you Tuesday,
Ian King Editor, Strategic Fortunes