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Black Rock predicts the future of the economy with the help of large data

Black Rock predicts the future of the economy with the help of large data

17.02.2018
Tags: Economy, USA, Analytics

Even economists with extensive experience can not always predict the changes in the world market. The largest investment company BlackRock decided to eliminate the uncertainty with the help of large data. The new system Macro GPS takes into account not only economic indicators, but also data from satellite images, traffic characteristics and even grammatical constructions in speeches of the leaders of large companies.

The largest investment company BlackRock, in whose management are assets worth more than $ 6 trillion, is going to change the usual format of financial analytics. The company's new tool - Macro GPS - collects large data and helps predict economic trends three months before they occur.

The system from BlackRock takes into account dozens of different factors. The level of employment and unemployment, the tone of the statements of the heads of companies and regulators, the survey data - all this information helps to form an approximate "portrait" of economic changes in the coming months. Macro GPS analysts rely on models developed by leading central banks, academics and financial institutions.

But, as Business Insider writes, the array of economic data of the company was not enough. "We often received contradictory signals. It was unclear what is more important - traditional analytical indicators or our own findings based on large data. In the end, we combined one with the other, "- said the head of economic and market research BlackRock Jean Boyvin. As a result, BlackRock has, for example, analyzed the speeches of the leaders of the largest companies. The system takes into account what kind of grammar time in their speeches business leaders use - the future or the past - and on the basis of this determines their investment plans.

Also, Macro GPS collects photos from satellites and patterns of traffic. By measuring the amount of shadow from buildings in the images, the company can determine how the construction of facilities in China or another country is proceeding.

The transition to the analytics of large data does not bode well for the employees of the investment company. In the spring of last year, BlackRock sacked 40% of staff within the "cardinal change of strategy," which involves moving to using artificial intelligence and analyzing large data for the selection of securities portfolios.

Nikolay Avelsnik
HIGH TECH
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