Would You Let AI Pick Your Stocks?
Computers run the stock market anyway, right?
I forgot, but a while back I put a tiny amount of money into AI's Top U.S. Picks on Stash1 - $10 to be exact. My investment has dropped (-0.53%) for a total of $9.95 as of this writing. Could be worse, I suppose.
Here’s what Stash says about AI's Top U.S. Picks:
Built on IBM's Watson AI, this fund holds US stocks picked by artificial intelligence models.
The AI is doing better than some of the other stock funds I have, but fortunately I did not risk much. (I have less than $100 invested in my Stash personal portfolio, kind of sad, huh?)
For example, “Conservative Mix” is down 3.56% and Up & Coming is down 23.45%. But “Small but Mighty” is doing well for me at +21.69%, kicking the butt of the AI.
Sadly, I have just a mere $9.87 in Small but Mighty.
It seems AI has a way to go when it comes to stock picking. But I’ll bet it gets much better soon.
This, BTW, is not stock trading advice or financial guidance, play the stock market at your own risk…especially if an AI is your fund manager.
This is my Stash affiliate link - https://get.stash.com/stephan2wxsb - it’s one of those you get $20 in stock, I get $20 in stock deals.
Even human fund managers run hot and cold. "Investing" in the stock market is not much different from gambling at a casino, just more respectable. (And for every investing strategy out there I am sure there's a gambling system that some poor schlub will bet his last dollar on)
One way to gauge the ability of an AI stock picker would be to track its performance against an Exchange Traded Fund in that sector. ETFs are like mutual funds in that they are a basket of securities, but they trade like individual stocks.
Tracking to an ETF would provide a gauge that would show how AI stock picks do against the broader market.
https://www.investopedia.com/terms/e/etf.asp