In this week's Stansberry Investor Hour, Dan and Corey welcome David Trainer back to the show. David is the CEO and founder of New Constructs, a research-technology firm that uses human expertise and machine learning to analyze companies and get superior financial data.

David kicks things off by providing the key to what he believes makes AI as good as it can be. Then he discusses how he and his team use machines to scale analytics. He follows that up with how his data led to a partnership with Google. And he notes how the data his team uses has been shown to be better in studies...

It's all [Securities and Exchange Commission ("SEC")] filing data... And this [Journal of Financial Economics paper] systematically [compared] our data to everything else out there, and they wrote this 70-page paper proving that our data is better. And by better it's not just that it's different or that it predicts next period's earnings better. Better means it produces alpha... And that's what we mean by better data. It's better fundamental data.

Next, David points out that machines can't read through company filings until humans show them how to do it. He then shares the process he has gone through with AI and how it's at the stage where it can teach itself and learn from its mistakes. David notes how now is the time for the private sectors to fix the problems that the government has failed to do so...

More people in the private sector have to step up, because we can't trust the government to do it anymore. We've said, "Oh yeah, the government's going to do this. They're going to take care of measuring inflation or labor stats." And we eventually learned these are highly dysfunctional organizations whose numbers really can't be trusted. Or maybe the SEC is going to make sure companies publish true earnings. They don't do that. Someone in the private sector has got to step up and do that.

Finally, David bemoans how Wall Street has shifted from being a "steward of capital markets" to becoming an "exploiter of capital markets." He also gives an example of how his clients can use his system to navigate market complexity. Ultimately, David wants folks to do their own research so they can be on guard against useless and deceptive information...

Do your diligence. Don't trust just what you see on the news. Don't trust what you see in social media. Those people are trying to sell to you, not inform you. They only want you to be informed to the extent that it leads to you buying what they're selling... Something that's lost in today's world is people willing to be [as] discerning as they need to be about what's right, what's wrong, what's good, what's bad, what's healthy, what's not healthy. And I just wish them all to put some put more effort and focus into being more discerning and diligent.

Click on the image below to watch the video interview with Ben right now. For the audio version, click "Listen" above.

(Additional past episodes are located here.)

The transcript is coming soon.

This Week's Guest

David Trainer is the CEO and founder of New Constructs. Before founding his company in 2002, he gained more than six years of experience as a Wall Street analyst. He joined Credit Suisse First Boston in 1996, where he created an economic-based earnings model and brand, spearheaded the effort to apply consistent analysis equally across industries, and managed the Value Dynamics Framework project, a separate business for the company across three continents.

In 2000, David joined Epoch Partners, where he covered the customer-relationship-management software industry and developed a proprietary framework that quantified the sector's return on investment. David earned his Bachelor of Science in international business from Trinity University in San Antonio.