High performance data analytics system for automated investment management

A computer-implemented method for automatically managing a plurality of investment accounts comprising the steps of:

• maintaining a data store including information on the plurality of investment accounts;
• monitoring and analyzing prices of one or more securities;
• determining a plurality of past time periods wherein each past time period in the plurality of past time periods is associated with at least one characteristic known to have an effect on prices of securities;
• determining at least one characteristic cl known to have an effect on prices of securities corresponding to a current time period;
• determining a subset s1 of the plurality of past time periods wherein each time period in s1 is associated with cl;
• analyzing performance for several securities during time periods which are members of s1, comprising the steps of:
• assigning similarity scores based on a plurality of characteristics selected from a federal funds rate, US treasury yields of different durations, interest rate trends, inflation rates, inflation trends, oil prices, and oil price trends, wherein each similarity score is positively correlated with how similar the characteristic is in the current time period and a past time period;
• assigning an additional similarity score for the current time period and the past time period based on a relative performance of defensive sectors to an overall stock market;
• computing aggregate similarity scores for each past time period in s1 from at least one similarity score associated with the past time period;
• and
• determining performance of a security over a plurality of past time periods in s1 by weighting returns in each of the plurality of past time periods in s1 by an aggregate similarity score for the past time period;
• and
• selecting at least one security for at least one investment account in the plurality of investment accounts wherein for each security i1 of the at least one security, a return over at least one time period in s1 after an inception of i1 exceeds a return for a market index over the at least one time period s1 after the inception of i1.

A system for managing investments for a plurality of users comprising:

• a user interface communicatively coupled via a network to at least one processor configured to execute computer program instructions, wherein the at least one processor, responsive to executing computer program instructions, performs a method comprising:
• storing, in at least one data store, information about users, accounts, and investments;
• analyzing data on past returns of securities and financial market conditions to select securities, wherein said data includes interest rates on at least one US treasury bond;
• receiving data from a plurality of users via the user interface, wherein for each user in the plurality of users said data includes an amount of money wanted and a date by which the money is wanted;
• and
• executing at least one transaction, by communicating at least one transaction message via a computer network interface communicatively coupled with the at least one processor, the at least one transaction being executed to purchase, for a user in the plurality of users, at least one fixed rate security with a maturity date based on the date provided by the receiving data via the user interface;
• executing at least one transaction to purchase at least one fixed rate security for the user in response to the analyzing data indicating a rising interest rate for at least one US treasury bond;
• executing at least one transaction to purchase at least one long-term bond or at least one long-term bond fund for the user in response to the analyzing data indicating a falling interest rate for at least one US treasury bond;
• executing at least one transaction to purchase at least one fixed rate security for the user in response to determining a low risk tolerance level for the user;
• and
• executing at least one transaction to purchase at least one high-yield bond or at least one high-yield bond fund for the user in response to determining a high risk tolerance level for the user.