A New Predictive Edge

Show from 09/20/24 Host Jeremy Schwartz and Professor Siegel discussed the recent Federal Reserve meeting, with Professor Siegel expressing surprise that the Fed didn't raise rates by a quarter point despite strong data. He explained the Fed's recalibration in its approach, focusing on reaching the long-run neutral rate, which he estimates is around 3.5%. He also shared his expectations for gradual rate cuts over the next year and the potential impacts on stocks and bonds. (19:00) Jeremy continues with Alejandro Lopez-Lira from the University of Florida, who shares insights on his recent research using AI for stock prediction. They discuss the implications of large language models like ChatGPT on financial forecasting and market efficiency. Alejandro also talks about his new book, "The Predictive Edge," and delves into how AI and machine learning can enhance traditional financial models and portfolio strategies. 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 about Alejandro at: https://alejandrolopezlira.site/ Follow Alejandro on LinkedIn: https://www.linkedin.com/in/alejandro-lopez-lira-239525a9?original_referer=https%3A%2F%2Fwww.google.com%2F