Legend Advisory's Artificial INtelligence, AANN, Anticipates continued Strengthening in the Global Equity Markets

Press Release
June 1, 2009

PALM BEACH GARDENS, Fla.--(BUSINESS WIRE)--Legend Advisory Corporation, a registered investment adviser, announced that its Asset Allocation Neural Network (AANN), a form of artificial intelligence aimed at forecasting the relative strength of global market sectors, is indicating its belief that the equity markets will likely continue their cyclical upturn. A continued strengthening of the global equity markets is anticipated. Furthermore, after disfavoring domestic small-capitalization stocks for almost two years, AANN has recently begun to favor this asset class...

Essentially, AANN is a computer-based model that thinks and learns much like a human brain, but at much faster speeds. AANN is a form of artificial intelligence known as a "neural network." A neural network is an analogy to human brain cells, called neurons, with connected neurons referred to as a neural network. Neural networks, such as AANN, sift through data using highly interconnected processes and, similar to brain cells, are designed to learn the structure of data and detect patterns. AANN is able to scan thousands of pieces of data at a time at very fast speeds, examining their interrelationships and making predictions as to the relative strength of asset classes in domestic and international stock and bond markets.

Every month, AANN ranks the relative strength of seven asset classes: large- and small-capitalization domestic stocks, investment grade and high-yield domestic debt, international debt and equities, and cash. After an evaluation of AANN’s output by Legend Advisory Corporation’s Investment Committee, recommendations are fed into a separate optimization program, which creates weightings to suit the individual risk tolerances of up to five managed portfolios. Mutual funds and variable annuities are then researched and evaluated to fill the designated asset allocations.

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