Large Language Models Can Improve Stock Market Forecasts
Analyzing both numbers and narrative context in company reports led to better price forecasts.
Large Language Models Can Improve Stock Market ForecastsWhy cash profits are the best predictor of stock performance
Firms that are more profitable today on a cash basis could earn higher future returns.
Returns for a portfolio of companies with strong cash-based earnings were more than double those for a portfolio based on operating profit or accruals.
Ray Ball, Joseph Gerakos, Juhani Linnainmaa, and Valeri Nikolaev, “Accruals, Cash Flows, and Operating Profitability in the Cross Section of Stock Returns,” Fama-Miller working paper, April 2015.
Analyzing both numbers and narrative context in company reports led to better price forecasts.
Large Language Models Can Improve Stock Market ForecastsTechnology behind self-driving cars can help improve technical investing.
Machine-Learning Systems Can Search for Visual Patterns in Price ChartsA historical case study sheds light on the effects of bigger financial institutions.
Line of Inquiry: Kilian Huber on Who Benefits When Banks Get BiggerYour Privacy
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