As I explain in The Evolution of Evolution, when humanity merely evolves downstream, from an existing normalization of truth, get ready for infinite regression. That is my stern warning to Dutch funds, APG and PGGM, promoting an AI-driven investment platform for asset-owners, as reported by top1000funds.
Smorgasboard Of Make-Believe
As the publication states: “The AI-driven technology sifts through reams of structured and unstructured data to gauge the extent to which companies’ products and activities meet the UN’s Sustainable Development Goals (SDGs).”
Let’s break this smorgasbord of misplaced assumptions in asset management down once again:
Flawed foundational beliefs
The U.N. is completely wrong in its reference and association with sustainability, an evolutionary oxymoron, for sustainability does not exist anywhere in the universe. That misnomer is more than a mere conflict of surface-level semantics as it involves a fundamental misapprehension of the cosmos and the role of humanity on this tiny little planet in it.
Those who refer to sustainability are new-born flat-earthers, missing a few crucial dimensions in the fractal of human expansion. We must replace the seventeen bandaids to human ignorance with one that prevents such ignorance.
The one dictated by nature.
I have made my disdain for the wild adoption of Artificial Intelligence (AI), also used in this investment platform, abundantly clear. For, AI is based on data, derived from events that have already occurred, by definition not extrapolating to foresight to break the norm.
AI can play a useful role in society but not when its inherent capability of downstream suboptimization is sold to greater-fools as upstream. An asymmetry peddled as symmetry turns AI into the snake-oil of change for the twenty-first century sold to people who confound consequence with cause hopelessly stuck in grave depravity of reason (Nietzsche).
The arbitrage of finance deploying its unique insight into foresight is what is supposed to make one fund stand out from another.
The subjective analysis of the unique and unprecedented upside from foresight as the only dependable attribute of the firm running the fund in question. An attribute rapidly deflated by flawed, lazy, and commoditized collusion spawning the same subpriming, uniformity, of investment intake in assets that should produce the opposite.
Broken At The Top
Asset management must first come to terms with how distribution does not determine risk, how ten levels of bottom-heavy diversification is a feeder for diminishing returns from navel-gazing, and how the fractal of human ingenuity, steeped in relativity, cannot be supported by monisms of absolutism correlated to an index-of-self.
The avoidance of the higher-order structural flaws in asset management and a complete miscomprehension about evolution and technology, makes asset owners dangerous progenitors of human excellence.
It remains extremely worrisome how precisely the people responsible for the expanding fractal of human ingenuity with public money and more influence than government, know nothing about the rules of nature.
Asset management systems, like all systems conjured up by humanity, must obey nature’s principles to drive a theory supporting improved adaptability of humanity to combat nature’s entropy. Anything else will accelerate punitive distress to the state of humanity with unsustainable returns to boot.
We must deploy smarter systems of finance, as smart and diverse as the assets to which the theory of asset management is applied. This idea introduced above, despite bathing in a smoothy of misplaced populism, is not.