4 Investment Research Insights AI Uncovered About Inflation

How AI is Shaping the Future of Investment Research
Get the guide

There are key topics in the finance world that shape the market, conversations, and investment decisions. And that topic right now is inflation

Agnostic to any particular industry, inflation has permeated across companies and consumers alike. Despite the vast amount  of information available at our fingertips, it’s hard to dig through noise to find the salient points. It’s even harder to quantify the impact of inflation on the market as a whole. 

But with the help of AI-powered investment research tools, investors are able to find answers to questions that were impossible to quantify before. This information just might lead to your next big alpha.

Is Inflation Really As Bad As People Think?

Analysts and companies have been talking about potential price increases and expense management since the onset of the pandemic. However, our document trend shows that there has been a 33% increase in documents talking about inflation in the last 90-days. The elevated levels of news in the chart indicates that the public remains focused on this topic as prices at the pump and in stores remain high. 

Company docs and analyst reports mentioning inflation also increased during the most recent earnings season, which suggests that inflation will remain a hot topic for the next coming months.

Screen Shot 2022 07 05 at 10.57.34 AM

Which Industries Are the Least Impacted By Inflation?

You probably have a good guess on which industries have been affected most by inflation. According to our list of industries in the search results – banks, metals & mining, and food products are at the top of the list. But more interesting is the list of industries that are talking about inflation the least.  Piggybacking on the list below, it only took 5 minutes to find a stock amongst that list that jumped 52% between October 2021 and March 2022 in the Marine industry. In short: the top and bottom industry lists speak for themselves. 

Screen Shot 2022 07 05 at 10.57.46 AM

Which Companies Are Talking About Inflation, and How Often?

Yes, it is safe to assume at this point that nearly every person and company is talking about inflation in some way, shape, or form. But what if you could measure the exact number of times a company mentioned the word inflation over the last twelve months? Instead of just looking at margins or tweaking your model, take a look at a company and their competitors. How do they stack up to each other in regards to inflation? Is one company more worried than the other? What would be an otherwise impossible task is now done in a matter of seconds thanks to AI. 

Screen Shot 2022 07 05 at 10.57.59 AM

How is this Changing Q/Q?

Inflation has been on companies’ minds since the onset of the pandemic, which is why it is so crucial to track the shifts in tones Q/Q when doing your due diligence. 

AI-powered search will automatically detect mentions of the word inflation, as well as synonyms, within company transcripts. After detecting the word and its synonyms, it highlights any mentions of the word and rates the sentiment as positive, neutral, or negative. Being able to track this Q/Q can provide meaningful insight into management’s stance on a certain topic.

Screen Shot 2022 07 05 at 10.58.11 AM

In our latest whitepaper, How AI is Shaping the Future of Investment Research, we delve into how adopting AI improves the deliverables you produce. Download now to uncover powerful ways to generate new revenue and mitigate risk through AI.

Su Kim
Su Kim

An educator and strategist by training, Su Kim is the Product Marketing Manager for the Financial Services vertical at AlphaSense. Previously, she managed a client portfolio of S&P 100 companies in the industrials sector in one of the top 3 banks in the U.S.

Read all posts written by Su Kim