Trust your artificial intelligence to choose shares?

Know the new arrows, they will remind you of their old peers. One of the issues that has been followed up is the investment products based on artificial intelligence, as there is a sensation in the ‘Wall Street’ regarding artificial intelligence, which takes on the tasks of real investment fund managers, as it is likely to be better selected from shares. The situation cannot be worse for what it is, as two years a year the results of the comparison report appear between the performance of the S&B indicators and the active investment funds, issued by ‘S&B Global’ and known as ‘Spiva’, that most active investment managers constantly achieved a sub -level performance compared to the large -scale market index. Although the report does not include hedge funds, their performance was in no way better. The hope of artificial intelligence has introduced artificial intelligence into the field, accompanied by hope to achieve what human managers cannot do, but it will not happen anytime soon. Beginning, the total number of Arrow’s choice is the return of the market, the fees are chosen in the way in which founder of the late Vanguard group, John Bouglal, has always been mentioned, and this also applies to people and robots, so the robots are destined to lose in general. Of course, some of them will achieve better performance than the market, but most of them will not reach a large margin enough to overcome the fees, so it is possible to learn from the experience of real arrows. More than 7,000 investment funds were counted in active management shares, as the company ‘Morning Star’ calculated the returns according to the risks compared to the market over the past ten years, and although about 45% of their profits achieved before the fees were calculated, the profits were limited to 27% after the fees were deducted. Creating new methods that determine the competition is another challenge for artificial intelligence, which is competition from other robots. The time for human arrows was indeed over, because there are a large number of low -cost boxes that simulate traditional strategies for the choice of stock, such as value, quality and momentum, according to specific rules, as well as the approach of quantitative analysis that the computers mainly implemented. Like human managers, they always do not achieve a better performance than the market, but the opportunity to do so is greater for drivers of the cheapest boxes. Therefore, artificial intelligence should be better than traditional strategies for choosing stock to maintain its importance in this area. He will have to devise new methods to achieve better performance than the market. It may be, but it may not necessarily help investors because they will have to use the low possibility they always use with subject managers, which are the choice of shares that will make advance profits. However, the saying is easier than the act, as the expectation that any of the arrows will achieve a better performance than the market is almost impossible. The new drivers do not have a success record they deliver, and those who do not constantly deserve it. Even if artificial intelligence proves its ability to make profits more continuously, it will quickly accept a large number of investors at the best boxes and limit their ability, which will force them to reject new investors. The only alternative is the guess of any of the artificial intelligence models the best arrows, and for most investors it will only guess because of the ambiguity around artificial intelligence. This is an unacceptable way to invest. Wall Street offers expensive alternatives that may not be able to achieve artificial intelligence for investors, but it is a blessing to Wall Street, as bank profits and major financing companies have decreased as a result of the acquisition of no commissions, and the profits of low -cost indicators and automatic consultants have dropped. In response, many of them have suspended the hope of investors to achieve big profits on the “alternative” with the highest costs, mainly in hedge funds, private property and daring capital. However, the pursuit of billions of dollars behind the necessary number of investment opportunities threw it on these alternatives in the current period, which led to a decline in performance. Therefore, artificial intelligence offers a new source of promises and income. A large number of investors will be excited. And if there is a doubt, the development of the circulating fund sector is a good example, as the activity started three decades ago with a box that detects the S&B 500, and now it is transformed into a large field full of bets that include thousands of boxes that are likely to use a high financial lever or a small part of the market, if any of the low cost is. While the percentage of expenses in the S&P 500, the first trader, is 0.09%, the average of the traded boxes is this percentage six times, and there will be some of them that will exceed the performance of the Giant S&B 500 fund over time. The case is not limited to the circulating fund sector. In terms of money, technology has brought disadvantages that exceed benefits, as young investors on cryptocurrencies, politics and the shares of “M.” Bet companies, and pick trading platforms due to big profits. To encourage people to save regularly and invest in low -cost indicators will achieve less profits. What is the expected path that will take artificial intelligence? Technology changes stock selection. Artificial intelligence can achieve a single benefit for investors in the indicators. They may not have to listen to the shares of the arrows of how to reduce the indicator funds of market efficiency and lead to share prices. Soon, artificial intelligence will offer a large number of robots that can take a closer look at the financial statements and determine share prices, and it is likely that you can do so faster and more accurate form of analysts, and it is assumed that these rational investors can possess special indicators in calm and reassurance. It is not a criticism of artificial intelligence in general, so I do not doubt it will have a major impact in many sectors, and I trust the same amount as the managers of the boxes that benefit from artificial intelligence, profit, whether their performance exceeds the market. But I doubt investors who pay large amounts for the plight of profits will be achieved.