Fintech Wizard Yin Luo Mines Human Language For Hidden Meanings

The words people use, the way they phrase things during conference calls, in reports or in regular conversations; all contain many of the quantitative keys that make Yin Luo such a highly respected analyst. "It's called natural language processing, using computer algorithms to, for example, analyze news stories" and draw conclusions, said Luo, vice chairman for quantitative research, economics and strategy at Wolfe Research, LLC. For example: A CEO has a conference call with analysts and says "I think" before offering insight. There is a distinct difference between beginning a sentence with "We think," which indicates a level of uncertainty seeking cover of the universal "we." "If they say'we think,' they are less certain," said Luo. This sort of analysis is the type of "alternative data" that excites Luo most about his job.