� ��� ������

�

���

� � � � � �� �

��

�

T H E E V O L U T I O N O F F I N A N C I A L I N T E L L I G E N C E

<

V O L U M E 2 0 | E D I T I O N 0 3

�����&2��.9.2,�3(.&0��*&7�538432������8*67.326+35�$385��3'';.67�� -*!07.1&7*��3:*5��*6/

����*),*��82)6�!2)*5��.5*�����8*67.326�+35�$385�#*&07-��)9.635���5*).(7�357+30.3��*5+351&2(*

�� ��*55&5.=6��*:��4**)67*5��3:�73��&+*7;� *67�$385�*5632&0��.037� -*�#350)=6�*67� 5.46�';��3&7

� ��� ������

�

���

� � � � � �� �

��

�

12W O R T H . C O M

�����������

� � ������������ ��������&,*��

Scott F. Mahoney, CPWASM, Senior Vice President, Portfolio Management Director, Family Wealth Director

Today we live in a world in which airplanes can fly themselves, cars tell us how to get where we want to go, and robots answer the toughest trivia questions…correctly. For the most part, these and other technological advancements have been embraced and quickly integrated into our daily lives. Just take a look at the mini computer in your pocket; it plays your favorite song every time your best friend dials your phone number.

As a result of all these smart gad-gets, we have tons of information at our fingertips all day, every day. While it can be argued that individu-als can make better decisions with more information, I believe if a person takes in too much data, decision-making quality could begin to deteriorate. Then, at some point, the person becomes overloaded with information and can make worse decisions. That might be relatively harmless when trying to choose a res-taurant in New York City, but not when it comes to making long-term investment decisions.

AVOIDING DATA INDIGESTIONWe are all continually bombarded with irrelevant noise and important news that may or may not have a direct impact on assets we own or manage. The growing challenge is wading through all that data and deciding what is truly applicable. That is where artificial intelligence comes in. In this case, it is called a “neural network.”

A neural network relies heavily on trends and patterns. This artificial intelligence is able to scan thousands of pieces of data at very fast speeds, examining their interrelationships and making predictions. It actually learns, and it can de-emphasize older cause-and-effect relationships that are no longer relevant while it emphasizes the new ones.

TAPPING INTO THIS NEW TECHNOLOGYCurrent financial neural network models are being used to forecast the strength in growth equities versus value equities and the relative strength of asset classes in domestic and international

stock and bond markets, among other financial market indicators. They are also providing investment professionals with objective directions on when to buy and when to sell. Judging from the positive publicity this technology is receiving and on the conversations I have with my clients, I think this could prove to be a powerful and revolutionary investment tool—the must-have gadget for the financial world—as we speed along the information super highway.

While this artificial intelligence is not available on your smart phone or laptop, I believe more and more poten-tial investment opportunities that tap artificial intelligence are becoming available through professional wealth advisors. I have become a knowledge-able advocate for this resource. Will computers replace advisors any time soon? That is unlikely. Relationships with our clients rely on very human elements, including a compassionate understanding of their family dynam-ics, trust and integrity—emotions computers cannot relate to…yet.

The investments listed may not be suitable for all investors. Morgan Stanley Smith Barney LLC recommends that investors independently evaluate particular investments, and encourages investors to seek the advice of a financial advisor. The appropriateness of a particular investment will depend upon an investor’s individual circumstances and objectives.

The views expressed herein are those of the author and do not necessarily reflect the views of Morgan Stanley Smith Barney or its affiliates. All opinions are subject to change without notice. Neither the information provided nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Past performance is no guarantee of future results. © 2011 Morgan Stanley Smith Barney LLC, member SIPC.

How can artificial intelligence help us make better investment decisions? By Scott F. Mahoney“ ”

J U N E - J U L Y 2 0 1 1

Together, they represent some of America’s finest families, who inspire them by their

l Mr. Mahoney and his team have access to world-class intellectual c

105W O R T H . C O M J U N E - J U L Y 2 0 1 1

TH

E M

AH

ON

EY

TE

AM

AT

MO

RG

AN

ST

AN

LEY

SM

ITH

BA

RN

EY

MY HOBBIES ARE…

Assets Under Management

Minimum Fee for Initial Meeting

Minimum Net Worth Requirement

Largest Client Net Worth

Financial Services Experience

Compensation Method

Primary Custodian for Investor Assets

Professional Services Provided

Association Memberships

Website

Email

“I believe more and more potential invest-ment opportunities that tap artificial intelligence are becoming available through professional wealth advisors.”

∑ Scott F. Mahoney

Raised in a working-class home with solid values, Scott F. Mahoney was fortunate to get a great education and launch a career that lets him help people navigate through their life cycle of wealth. Determined to provide the highest level of service, he has assembled a team of professionals, each of whom shares his vision and passion for excellence. Together, they represent some of America’s finest families, who inspire them by their life stories and philanthropic activities. Mr. Mahoney and his team have access to world-class intellectual capital and financial planning tools that enable them to customize every service they provide. Their clients are as close to them as family.

… And ideal long-term investors, are those who are completely honest about

what they want to accomplish in relation to their life goals. They take my advice, believe in diversification and are

not interested in making impulsive changes because of short-term trends.

They also welcome the fact that I want to work with their other advisors.

WHAT MAKES GOOD CLIENTS…

Skiing, bike riding and archery. I also enjoy watching my children play sports and my wife compete in equestrian competitions.

My humility and sense of humor and kissing my wife and daughters, even if they are sleeping

I NEVER LEAVE HOME WITHOUT…

Please give me a call at 866.932.3032. I have clients around the country and would be glad to talk over the phone or meet with you in person.

How to reach Scott F. Mahoney

R E P R I N T E D F R O M

THE EVOLUTION OF FINANCIAL INTELLIGENCE

®

About the Worth Leading Wealth AdvisorsThe Worth Leading Wealth Advisor admittance process is based on, but not limited to, the Advisor’s experience, education, fiduciary status, compliance record, wealth management services,methods of compensation and scope of current business. In order to be considered for the Worth Leading Wealth Advisors Program, financial professionals must be willing to provide completeand full disclosure to investors so that independent analysts from Paladin Registry can thoroughly screen and evaluate their credentials, ethics and business practices. Once admitted,Advisors pay a fee to be included. Investors and potential investors are solely responsible for the decision to select particular Advisors.

W

Scott F. Mahoney, CPWASM

Senior Vice President, Portfolio Management Director,Family Wealth Director

The Mahoney Team at Morgan Stanley Smith Barney 1200 Mt. Kemble Avenue

2nd FloorMorristown, NJ 07962

Tel. 866.932.3032

scott.mahoney@mssb.commorganstanley.com/fa/themahoneyteam