What Elon Musk doesn’t understand about journalism – Thomas Malone

Thomas W. Malone Professor of Information Technology

From Salon

Elon Musk’s sometimes antagonistic relationship with the press is no secret. But last week, the billionaire chief executive of SpaceX and Tesla exhibited a new level of hostility.

In a series of tweets, Musk referred to journalists as “holier-than-thou” hypocrites, said that news organizations had lost their credibility and the respect of the public, and blamed the media for the election of President Trump.

Then things got interesting. Musk proposed creating a “media credibility rating site” where the public would be able to “rate the core truth of any article & track the credibility score over time of each journalist, editor & publication.” He suggested calling this site “Pravda”—the Russian word for “truth” and also the name of the longtime Communist newspaper. He likened the rating platform to Yelp for journalism.

Despite the bluster, Musk may be on to something. At a time when public trust in the media is at an all-time low, a reputation system that allows citizens to gauge the reliability and accuracy of news they consume could be a step in the right direction. Read More »

LIVE from Buenos Aires: Transforming the FinTech Revolution

¿Cuáles son las tendencias en blockchain, criptomonedas (cryptocurrency), ciberseguridad y gestión automatizada? ¿Cuál es el futuro de FinTech en Argentina y Latinoamérica?

Únanse para un día de conversación sobre las nuevas tendencias e innovaciones en materia de fintech. La conferencia “Transformando la revolución del FinTech” organizada por la escuela de negocios MIT Sloan junto a la organización empresarial IDEA tendrá lugar el 29 de mayo en Buenos Aires, Argentina. La conferencia reunirá a investigadores y líderes de instituciones gubernamentales y presentadores. Entre ellos buscarán destacar las numerosas formas en que la incipiente tecnología financiera está alterando diversos segmentos del mundo financiero, entre ellos, monedas, títulos valores, préstamos, pagos y gestión patrimonial.

Estamos en vivo aquí:

Las puertas que abre la tecnología del blockchain – Christian Catalini and Cathy Barrera

MIT Sloan Professor Christian Catalini

MIT Sloan Professor Christian Catalini

From La Nacion

Si se otorgaran premios a la terminología comercial más de moda, sin duda la cadena de bloques o blockchain sería candidata. Después de todo, es una de las tecnologías más promocionadas en Silicon Valley y más allá.

Y, sin embargo, pese a tanto revuelo, la promesa y el potencial de la cadena de bloques -tecnología en la que se basan las criptomonedas, como el bitcoin- no se comprenden del todo. Hasta la fecha, solo se hicieron unos pocos estudios sobre el tema y, según una encuesta hecha el año pasado por Deloitte, casi el 40% de los altos ejecutivos afirma tener escaso o ningún conocimiento del modo en que funciona la cadena de bloques.

En un nivel básico, la tecnología de cadena de bloques permite que una red de computadoras llegue, a intervalos regulares, a un consenso sobre el estado verdadero de un registro descentralizado. Ese registro contiene diversos tipos de datos compartidos, como registros de transacciones, atributos de transacciones, credenciales u otra información. Read More »

International students flock to US university to unlock potential – and ‘invent the future’ – Maura Herson

Maura Herson, Director of the MBA Program at MIT Sloan

From Business Vision

MIT has a worldwide reputation, and international students make up 34-40 percent of the Sloan School of Management’s MBA Programme.

MIT Sloan, based in Boston, values diversity and strives to provide a supportive environment for its global citizens. Its mission is to develop principled and innovative leaders who will improve the world, and enrich the learning experience of all students.

The MBA Programme conducts around 50 “Sloan on the Road” events each year to share admissions information and encourage qualified applicants, and its efforts – combined with MIT’s reputation – continue to pay off.

The US remains a popular destination for international graduate students. In the MBA Class of 2019, 48 percent of international students will be from Asia or the Middle East, 22 percent from South or Central America, 16 percent from Europe, nine percent from Canada and Mexico, three percent from Oceania, and two percent from Africa.

MIT has applications from India, China, Korea, Japan, South-east Asia and Central and South America, all regions where it has active alumni promotion.


Read More »

Imagine If Robo Advisers Could Do Emotions– Andrew Lo

MIT Sloan Professor Andrew Lo

MIT Sloan Professor Andrew Lo

From the Wall Street Journal

At a conference last year, I was approached by an audience member after my talk. He thanked me for my observation that it’s unrealistic to expect investors to do nothing in the face of a sharp market-wide selloff, and that pulling out of the market can sometimes be the right thing to do. In fact, this savvy attendee converted all of his equity holdings to cash by the end of October 2008.

He then asked me for some advice: “Is it safe to get back in now?” Seven years after he moved his money into cash, he’s still waiting for just the right time to reinvest; meanwhile, the S&P 500 earned an annualized return of 14% during this period.

Investing is an emotional process. Managing these emotions is probably the greatest open challenge of financial technology. Investing is much more complicated than other chores like driving, which is why driverless cars are already more successful than even the best robo advisers.

Despite the enthusiasm of tech-savvy millennials—the generation of investors now in their 20s and 30s who are just as happy interacting with an app as with warm-blooded humans—robo advisers don’t take into account the limits of human cognition; they don’t make allowances for emotional reactions like fear and greed; and they can’t eliminate blind spots. Robo advisers don’t do emotion. When the stock market roils, investors freak out. They need comfort and encouragement. During last August’s stock-market rout, Vanguard Group told The Wall Street Journal it was “besieged” with calls from jittery investors and had to pull volunteers from across the company to handle the call volume.

But what if a robo adviser could identify the precise moment you freak out and encourage you not to sell by giving you historical context that calms your nerves? Better yet, what if this digital adviser could actively manage the risk of your portfolio so you don’t freak out at all?

Imagine if, like your car’s cruise control, you can set a level of risk that you’re comfortable with and your robo adviser will apply the brakes when you’re going downhill and step on the gas when you’re going uphill so as to maintain that level of risk. And if you do decide to temporarily take over by stepping on the brakes, the robo adviser will remind you from time to time that you need to step on the gas if you want to reach your destination in the time you’ve allotted. Instead of artificial intelligence, we should first conquer artificial emotion—by constructing algorithms that accurately capture human behavior, we can build countermeasures to protect us from ourselves.

Robo advisers have great potential but the technology is still immature; they’re the rotary phones to today’s iPhone.

Marvin Minsky, the recently deceased founding father of artificial intelligence, summarized the ultimate goal of his field by saying that he didn’t just want to build a computer that he could be proud of, he wanted to build a computer that could be proud of him. Wouldn’t it be grand if we built a robo adviser that could be proud of our portfolio?

See the post at  WSJ “The Experts” 

Andrew W. Lo is the Charles E. and Susan T. Harris Professor at MIT Sloan School of Management, director of the MIT Laboratory for Financial Engineering, principal investigator at MIT Computer Science and Artificial Intelligence Laboratory, and chief investment strategist at AlphaSimplex Group.