Caveats in Computer-Aided Financial Analysis

Abstract

A CONSIDERABLE AMOUNT of enthusiasm over the potential of computer-aided financial analysis has been evident in recent articles in the Financial Analysts Journal.' This article is not a rebuttal to these prophetic works, but rather a word of caution. The marriage of the analyst's skills with the computer's peed and computational power is undoubtedly going to be fruitful, but certain elements of the proposed manmachine interactive environment produce potential pitfalls for the unwary.