BlackRock, Future Economic Forecasting Robot

The role of robots is increasingly felt in the economy. Business Insider reports, said, a giant investment company, BlackRock, realized investors' doubts to invest money. Often stockholders calibrate their economic prospects independently.

BlackRock is aware of this as an aid that can be solved with technology. Companies with a total investment value of 6.3 trillion US dollars offer an exclusive indicator in the form of BlackRock Macro Global Positioning System (GPS).

The role of the robot machine is to predict future economic forecasts and provide information for investors to be considered. Officially, the tool is able to show the forecast of gross domestic product (GDP) for the next 12 months. The prediction is able to survive within three months. In other words, robotic machines help shareholders make decisions about potential economic shifts.

BlackRock Macro GPS specifically looks at indicators, such as stock activities, survey data, and others related to investment. Then GPS will look for models that can be developed by banking institutions to other financial institutions. Currently, GPS is working using the 'Big Data' indicator. The model works using quantitative techniques in processing large amounts of data to make the main analysis.

"We often get conflicting signals from one another," said Head of Economic Research and BlackRock Market Jean Boivin.

Questions arise regarding the data used by BlackRock Macro GPS to be able to make these predictions. Researchers mine transcripts of company manager conferences to obtain data. Then the research team recorded the ratio of future predictions to the previous one so that it could create other types of predictions.

Boivin explained, GPS is an element factor, like satellite imagery by making traffic patterns. For example, the research team used shadow measurements to analyze the speed and progress of construction activities in China. Although it has not officially become part of the GPS Macro but the results have shown the achievement and coverage as expected.

Until now, BlackRock offers GPS for the United States (US), England, Germany, France, Italy, Spain, Japan and Australia. But the expansion plan for BlackRock is not only limited to the country. The company has entered the Chinese market. The company also provides traders with better economic data than previously done. BlackRock is currently focusing on finding a much more innovative data source for the next step of prediction.