Gary, thanks for visiting our blog and share your thoughts. We did not specifically cover the issue your raised in this three-part series, a first among the questions raised so far on all platforms since we published the second post last Friday.

We actually implied "rational" models would beat the herd. This is of course a simplification, the rationale is not that different to what Buffett's recent comment on cryptocurrrncies (https://www.cnbc.com/2018/01/10/buffett-says-cyrptocurrencies-will-almo…) - don't bet against the bubbles in the short term but over time and on average market efficiency rules.

It is also a simplification in terms of the AI models' rationality. They don’t have to be but they can be while it is very hard for us humans to be as rational.

As to whether AI will beat human investors eventually, I'd like to quote Luke Ellis of Man's Group in closing: “My hope is always that there will be parts that humans do that AI doesn’t do,” But, he adds, “I wouldn’t bet my life on it.”

Warm regards,
Larry