Do Professional Investors Attempt to Use Too Much Data?

Wall Street financial models have been able to resort to what is known as data mining. Whereby information on various investing strategies of the past are collected. This is called back-testing when the strategies used in the past are used to see what would happen, hypothetically, as a strategy, when projected into the future.

All this is based on many assumptions that the mathematical models are supposed to predict.

I have made a career of looking at over 1,600 investment strategies used by investors over the years. I have investigated their pros and cons.

And I can tell you this: There are some worthwhile concepts as well as gibberish out there. But all in all,no panacea exists. I would say that most of the data mining is useless, except for their use to market investment management services.