Neil Dwane (Allianz) | The Machine will be better at seeing patterns:
- Seeing a pattern in the combination of stock prices and commodity prices, and recommending trades to exploit this.
- Monitoring satellite imagery of tankers and finding a pattern between oil prices in different regions reflective of local supply and demand.
- Monitoring all company filing documents and earnings transcripts to pick up cautious tones, new risk disclosures and inconsistencies in management teams’ messages.
- Following all the commentary and estimates of Street analysts to pick up contradiction in sentiment to better understand how companies are doing.
The human will be better at understanding change:
- Evaluating the impact of a new drilling technology on the industry.
- Understanding changing geopolitics and implications for oil cartels’ policies and pricing.
- Evaluating a change in a company’s strategy or a proposed merger.
- Understanding changes in the industry structure or changes in the relationships between energy companies and their suppliers or customers.
- Accepting what machines are better at and refocusing skill set and investment focus!