Can artificial intelligence help pick stocks? More specifically, can investors use AI to determine the fair price of a stock or a bond? I bet a lot of people right now would say yes, given recent advances that allow for the processing of ever greater amounts of information. I think my AI is better than
Last year was one of the worst years ever for financial markets. Call it recency or loss aversion or some other Daniel Kahneman bias but for some reason, our brains are hard-wired to assume big losses will be followed by additional losses (just like we assume big gains will be followed by additional gains).1 The thing about big
Equity exposure can be broadly segmented by market capitalisation (small, mid, and large) and style (value versus growth). Correlations within equity groups tend to be fairly high, although small-cap stocks tend to have the lowest correlations with the broad market. In our recently published 2023 Diversification Landscape Report, however, we found there can be significant
Just over a year ago, Russia invaded Ukraine, an appalling act rightly condemned by the world. In the immediate aftermath, experts weighed the economic impacts, with many projecting sharply higher commodity prices. The prediction made sense: a Russian oil embargo would crimp supply, sending prices higher, or so the thinking held. What happened? Brent crude-oil
Technology enables immediate access to everything wherever and whenever we want it. In many cases, such as staying in touch with friends and family, or learning about world events, that’s a good thing. However, when it comes to investing and money management, my fear is that faster and easier ways of investing will allow people
In Parts 1 and 2, different types of investments and the concepts needed to put those investments to work were introduced by highlighting Asset Allocation (how you divide your money between stocks, bonds, and cash) and Diversification (having a broad mix of each of these types of investments), how crucial these are to your long-term
Stocks and bonds might seem pretty basic, but there’s a lot to understand about the different types and why one might be a better choice than another. So this week, I want to discuss what to look for when choosing investments. Starting with stocks A share of stock is a portion of ownership in a company,
For those of you new to investing, I know it can be exciting, challenging, and sometimes a bit overwhelming. After all, investing doesn’t generally come naturally. It’s not like riding a bike. The reality is that the language of investing is often obscure, and the rules and regulations can be complicated. That said, investing is
2022 has got off to a rough start for investors. Already reeling from the prospect of higher interest rates, ongoing supply chain issues from the pandemic, inflation and increased geopolitical uncertainty, our emotions are running hot and our sense of security has been rattled, not to mention the fact that financial markets have been volatile.
