The Paradox of Development. In 2008, Google created a system to predict flu outbreaks in advance. Initially, the tool accurately forecasted when and where the flu might occur. However, in 2013, a new feature was added that suggested related search terms. As a result, searchers began inputting their queries less carefully, which led to a decline in the system’s predictive performance. Although improvements have been made since then, this example illustrates how enhancements in one area can cause failures in another. Therefore, it seems like we gain by losing, and often lose by gaining. - Joseph’s “just my thoughts”
Stock prices fluctuate constantly. There are several reliable ways to mitigate stock price volatility: trading short-term gap price differences, buying and selling with momentum, or holding high-quality stocks for the long term until volatility averages out. When stock price movement is mathematically differentiated by time, the instantaneous price emerges—but humans cannot act in microseconds. In contrast, computers, with enhanced performance, can now trade at these speeds. Furthermore, by using artificial intelligence to analyze stock data, computers can reduce mistakes and trade algorithmically, unaffected by emotion. Still, even computers are limited if humans incorrectly input trading rules. Humans are not suboptimal investors due to a shortage of information or knowledge, but because they often fail to follow the necessary rules in each situation. - Joseph’s “just my thoughts”