AI Stock Broker?
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It seems to me that this would be an ideal use of AI technology… Anybody tried it?
The Brad
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The stock market has been informed by AIs for a long time now. All hedge funds use computer analytics. Famously a guy named David Tepper was the last well known billionaire stock picker who did everything by gut feel and manual research. His favorite stock was Micron, which has been garbage since forever. But he made his billions somehow. He came up through the ranks on wall street, and had issue with one of his bosses at some point. After becoming enormously wealthy, he bought that boss's home, and tore it down out of spite. He's a great man.
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It seems to me that this would be an ideal use of AI technology… Anybody tried it?
@LuFins-Dad said in AI Stock Broker?:
It seems to me that this would be an ideal use of AI technology… Anybody tried it?
Spoiler alert, this post is stupid.
That being said, I have a friend who has for many years worked in the machine learning (ML) and AI world of stock/finance, and he has made a lot of money. I think he has a doctorate in robotics from Carnegie Mellon or something too.
The point is, I think this has been a work in progress for a while now. And yes it makes sense.
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@Mik said in AI Stock Broker?:
You can turn your portfolio over to a Robo-advisor in many companies. I've considered it.
I've had it on my agent's account since I worked for Empower. It's Ibbotson software (now Morningstar) tweaked for Empower. Since it was free and I didn't have that much money, I thought, why not?
For free, or for the fees that we charged for money with the plan I worked for (scaldingly cheap), it was worth it. I think a sharp human could whip it, but for an average investor in mutual funds, taking into account performance vs. fees, I think it would be hard to beat.
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I must say, for the average investor. DCA’ing into a few index funds is the way to go. Only change is if the market is really up (like a year ago) or really down (like the dip after the pandemic started) those are good times to get aggressive in the opposite direction. Not saying I’m smart enough to do that, but it seems like a good strategy.
