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Lipton and Lopez de Prado (2020) advocate for greater Nowcasting in quant-focussed investment management. The critical different between nowcasting and forecasting is that: Nowcasting only
Lipton and Lopez de Prado (2020) advocate for greater "Nowcasting" in quant-focussed investment management. The critical different between nowcasting and forecasting is that: Nowcasting only has value during periods of crisis while forecasts can be used in both steady state and crisis periods O Forecasts can analyse qualitative and quantitative data while nowcasts are restricted to quantitative data Forecasts are more appropriate for passive investment strategies while nowcasts are more appropriate for active investment strategies Forecasts are applied to macoeconomic expectations while nowcasts are applied to firm-specific predictions Forecasts use structured data to make long-range predictions, while nowcasts rely on unstructured observations to make short-range predictions
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