Lane Mendelsohn, President of Vantagepoint ai, interviewed Live on NASDAQ
President of the world’s first artificial intelligence trading software invited to interview live at the NASDAQ Marketsite in Times Square.
Jane King: Hello and welcome to the NASDAQ Marketsite in Times Square. I’m Jane King and with me today Lane Mendelsohn, the president of Vantagepoint AI. So great to have you.
Lane Mendelsohn: Thanks Jane.
Jane King: So fascinating some of this. Let’s start with what your company detected in terms of retail using artificial intelligence then we’ll kind of dig a little deeper from there.
Lane Mendelsohn: Sure. Well, as you know we forecast for thousands of different stocks in 13 different sectors. Retail is one of them. And what’s interesting is that over the last several weeks, as we’ve seen the markets have been very volatile, the overall markets, the DOW, the NASDAQ, the S&P have been clobbered. And a lot of people were not so sure that we were gonna see the holiday spending that we typically see because of what the overall markets were doing. November 20, our artificial intelligence indicators in Vantagepoint started to indicate that there was gonna be strength setting in and I think there were a lot of naysayers at that point in time just because it didn’t seem like that was going to be the case.
Jane King: Oh, people have written retail off.
Lane Mendelsohn: Yeah, totally written off.
Jane King: Yes. Brick and mortar done.
Lane Mendelsohn: Well, and the thing is the retail stocks, they don’t just go up or down because of what’s happening within retail or what’s happening with the overall stock market, but there are so many other sectors and so many other factors that will drive impact and influence retail stocks at that’s what we’re using artificial intelligence to do is to find those hidden patterns and data and look for those relationships. And then based on those relationships, use that information to give us early warning signs and clues as to what the retail stocks are likely to do.
Jane King: That’s really fascinating. But you mentioned there are other sectors that you look at too so what are those?
Lane Mendelsohn: Well, just to give you an example: When we’re forecasting for retail stocks, we’re looking at transportation stocks of course, but we’re also looking at technology, we’re looking at health care. We’re even looking outside of stocks. We’re looking at the general indices both domestically and internationally. But commodity prices as well. You currency prices, precious metals, these are all factors as well as interest rates because all of these factors do have an ultimate impact on what the retail stocks are going to do. And if you’re not analyzing all of those factors, you’re not seeing the full picture.
Jane King: That’s true. I mean gas prices go down. We’ve got a little extra money to spend at the stores or whatever.
Lane Mendelsohn: It’s all inter-related. That’s for sure.
Jane King: So what do you think the big picture here is then in terms of artificial intelligence and what it could mean for stock picking and the future of how we live?
Lane Mendelsohn: Well, artificial intelligence is changing the world. We’ve seen that in so many different areas from medicine to self-driving vehicles. Of course we’ve been involved in artificial intelligence since the late 1980s.
Jane King: Yes, that’s fascinating by the way. So finish this and then let’s talk a little bit about the history of the company.
Lane Mendelsohn: Well, the thing is I don’t think that artificial intelligence will ever replace humans. What artificial intelligence is gonna do is it’s gonna free up humans who are currently doing mundane tasks or tasks that could be automated and that will allow the humans to do things that can’t be automated or done by machines. And it’s just a more effective, more efficient way of utilizing human talent. And for us what we’re doing is we’re providing artificial intelligence technology to humans so that they can use that information to assist them in making the best possible decisions at the best possible times.
Jane King: So you mentioned you’d been working artificial intelligence since early ’80s, right? I mean how have you seen it change since then?
Lane Mendelsohn: Well, the biggest change that we’ve seen is number one the computing power. The computing power is so much more advanced now than it was back in the late 1980s and that’s when my father started developing the artificial intelligence in Vantagepoint. So it’s something we’ve been refining and perfecting for decades now. And because the computing power is so much stronger and more robust, the amount of data that we’re able to consume and mine and look for these hidden patterns within stock and commodity data, we can do it so much more quickly and we can ingest so much more data. And this is what’s allowed us to increase our accuracy and forecasting over the years.
Jane King: So does somebody buy your services then to stock pick or are they industries that they’re trying to know the macro trends that are going on in their industries? How does that work?
Lane Mendelsohn: We do have some institutional clients and hedge funds that utilize our technology but primarily we empower individual traders and investors. So people who are managing their own funds, their own retirement accounts. They want to obviously protect it and make it grow. Well to do that, especially in the volatile markets that we’ve seen, you’ve gotta have tools. You’ve gotta have insights and you have to have an edge. And with our accuracy being as high as it is, over 86% accurate, that’s gonna allow traders and investors to stack the odds in their favor and allow them to make the right decisions at the right times by having insight that they otherwise wouldn’t have had if they didn’t have this type of technology in their corner.
Jane King: You said 86% accuracy?
Lane Mendelsohn: Yeah.
Jane King: That’s pretty amazing.
Lane Mendelsohn: It absolutely is.
Jane King: No human can do that.
Lane Mendelsohn: Well, no human can do it and we actually have not been able to do 86% the entire time. It’s something we’ve been working up towards and as the markets have changed and evolved and as our technology has evolved, we’ve been able to pick up on patterns that previously we didn’t even see that they existed. And it’s these hidden patterns in data and how the US dollar interacts with crude oil and how crude oil interacts with the Euro, which interacts with the DAX and the CAC and then ultimately the DOW. We saw this … it all started back in the ’80s with the 1987 stock market crash. A lot of people think it was an event that was here in the US, the ’87 crash. Really it started in Asia, swept across Europe, ultimately landed here in the US and that’s when my father said, “We’re living in a global economy and traders and investors must have a global approach.” And that’s when we started to design the technology.
Jane King: And it would be impossible for one person to be able to keep track of all of those interim locking things. I mean you couldn’t sleep.
Lane Mendelsohn: You couldn’t if there were 100 hours in a day and you were Albert Einstein. You couldn’t do it. There’s just too much data and the patterns are hidden sometimes. See, you can see some patterns. You might say, “Well, this stock went up and that stock also went up so there’s a correlation.” Well, correlations is a very simplistic term, something that you can see just by looking at charts. We’re looking at non-linear correlations. These are relationships and patterns that you couldn’t see with the naked eye. They’re deep rooted in the data and that’s what the AI is uncovering for us.
Jane King: Fascinating.
Lane Mendelsohn: Thank you.
Jane King: And thank you as well for joining us. I’m Jane King at the NASDAQ Marketsite. Have a great day.
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