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Investing and trading is a dynamic game. If everyone has the edge of certain portfolio to out perform the average, then no one has the edge. Similarly AI is no
by gloryjulio 2mo ago
Investing and trading is a dynamic game. If everyone has the edge of certain portfolio to out perform the average, then no one has the edge.
Similarly AI is not going to solve that. Because everyone would end up with similar AI edge until no one has the edge.
People should start with simple universal rules: Stay invested. Buy low cost diversified etf fund. Favor long term investment instead of trading. Learn something from all weather portfolio composition to hedge the risks.
- inigyou 2mo agoWhen everyone is crowding into one investment that investment tends to get irrationally over-saturated. With the current makeup of the S&P500 we can predict it will dramatically crash in real value in the next five years.
- kasey_junk 2mo agoThat’s why the classic investment advice is to hedge your exposure to the equities markets, do more so the closer you get to retirement and don’t put money you need in the next 7 years in equities. The bigger concern with the classic advice is that bonds have become more correlated with equities and our backtesting was all done during a time period where the American liberal international economic system was dominant so we aren’t sure that it will hold up to the new partitioned order.
- gloryjulio 2mo ago[dead]