Market Themes: Growth?

How Limeglass uses AI & Rich-NLP to Maximise Research Capture

As investors currently grapple with the start of central banks reducing asset purchases and the real fear of a new “taper tantrum”, market research and advice is increasingly in focus.

A key question to ask is how will ’growth’ respond? Straight away this presents a conundrum. What do we mean by growth? Which country are we referring to? What are the inputs to growth? A simple search of the generic term will produce largely erratic results in research terms as it is widely used outside the context of ‘economic growth’ (i.e. company revenue growth, growth of Delta variant… etc.). Users of research will likely struggle to access strategic thought pieces that provide key insight and investment ideas.

If you were to search for just ‘GDP’ you would miss all the articles mentioning ‘growth’ therefore it will prove much more productive to search for the ‘theme’ itself which will include factors that determine or are inputs to growth. Here are some examples of tagged sub-themes: value added, nominal GDP, economic recovery, infrastructure and business investment… etc. These are all important determinants of the underlying theme. In addition, unexpected related themes that should not be overlooked could include: taper tantrum, stagflation, policy mistake and supply chain shortages.

These goals can be facilitated through Limeglass’s use of ‘Research Atomisation™’ which combines human research expertise with AI (Artificial Intelligence) and Rich-NLP (Natural Language Processing) to expose themes not just in research reports but more importantly at paragraph level within the relevant documents.

Ultimately, the growth outlook for major economies will always be the significant factor for global markets. At the current point in time the focus is clearly on whether the major central banks can manage the co-existence of extreme liquidity provisions and spiking inflation without producing sharp shocks to markets.

Steven Saywell