| | | price earnings multiples contract .... when rates go up as you can get a greater return in fixed income.
60 % of the bull market price growth from 1982 into 2000 was based entirely on Multiple Expansion of the Price Earnings Multiple due to lower interest rates.... 20 % was organic growth and the final 20% was a result of financial engineering...... which ran the gamut from not reflecting the cost of employee stock options, to the companies that engaged in roll ups and continuously wrote off the "In Process R & D"......
and of course that never ending round of stock repurchases that were Accretive to earnings since the revenues and earnings were being divided by fewer outstanding shares.
Booming economy.................. we should be so blessed... the Machine Learning age and the AI age are going to eliminate half of all of the jobs over the next 20 years.
That is why Switzerland (always on the forefront) had a ballet initiative to have a guaranteed basic income due to the machines taking over the jobs.
the 2 MIT professors who wrote the 2016 book Machine Language 2.0... both stated that this is what is coming down the pipeline.
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he has the same conclusion
Message 30489348
Pedro Domingos --- The Master Algorithm
a really excellent and very readable book on A I, machine learning and the ways to build better algorithms.
I found that I was reading different parts of the book.... going to the index in the back....seeing references that I wanted to know more about.... It's very accessible.
amazon.com
The Master Algorithm: How the Quest for the Ultimate Learning Machine Will Remake Our World Hardcover – September 22, 2015
by Pedro Domingos (Author
Algorithms increasingly run our lives. They find books, movies, jobs, and dates for us, manage our investments, and discover new drugs. More and more, these algorithms work by learning from the trails of data we leave in our newly digital world. Like curious children, they observe us, imitate, and experiment. And in the world’s top research labs and universities, the race is on to invent the ultimate learning algorithm: one capable of discovering any knowledge from data, and doing anything we want, before we even ask.
Machine learning is the automation of discovery—the scientific method on steroids—that enables intelligent robots and computers to program themselves. No field of science today is more important yet more shrouded in mystery. Pedro Domingos, one of thefield’s leading lights, lifts the veil for the first time to give us a peek inside the learning machines that power Google, Amazon, and your smartphone. He charts a course through machine learning’s five major schools of thought, showing how they turn ideas from neuroscience, evolution, psychology, physics, and statistics into algorithms ready to serve you. Step by step, he assembles a blueprint for the future universal learner—the Master Algorithm—and discusses what it means for you, and for the future of business, science, and society.
If data-ism is today’s rising philosophy, this book will be its bible. The quest for universal learning is one of the most significant, fascinating, and revolutionary intellectual developments of all time. A groundbreaking book, The Master Algorithm is the essential guide for anyone and everyone wanting to understand not just how the revolution will happen, but how to be at its forefront.
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Bill Gates and Buffett where tacitly agreeing that this is the trajectory that we are on...............
Buffett...... deserves to get skewered for accumulating a 10 % position in Wells Fargo while they were engaged in such illegal practices..... Elizabeth Warren wants to see the WFC CEO claw back his 200 million in performance bonuses..... Buffett should be forced to give back several billion. |
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