Newsletter: Fuzzy Sets and AI - Measuring Market Uncertainty

As complexity rises, precise statements lose meaning and meaningful statements lose precision. - The Law of Incompatibility, Lofti Zadeh

In this month’s newsletter, I’m discussing the use of fuzzy set principals embedded in the Market Climatology model. Fuzzy sets are a sub-set of artificial intelligence (AI) that mimics the way we make decisions under conditions of uncertainty. Then we’ll go into the recent surge in AI interest in the markets and the relationship that has with bubbles. Finally, we’ll talk about the current market state and what that means for asset allocation.

A Brief Overview of Fuzzy Set Theory