18 April, 2018

Why technology has actually made Stock picking both tougher and easier

I came to believe recently that one of the rising challenges of current investors is research. This is despite that technology has benefited us when it comes to receiving timely and accurate information/comparisons. We no longer have to wait to see market prices on letters or newspapers the same way as how the legendary gurus did. The list goes on and on.

However, technology actually makes it tougher for investors to get into the market early. With my available time and energy, I have been trying to research whenever possible and found some good companies. However, I am mostly late when I finally discovered them. This is because information is so fast and other global investors had already made their mark in these companies.

For better or for worst, robots and AIs have been also helping humans and intuitions with such discoveries on growth stories.

One typical example is the AI Powered Equity ETF with the ticker AIEQ. It uses AI to seek the fastest growing or stable companies which are below their intrinsic value. What it does is it processes available information of 6000+ companies based on selected algorithms and news articles (like a research analyst working around the clock; and it is getting smarter). Imagine how long it will take for humans to do the same with equal quality and results.

Their stock holdings includes Amazon, Nvidia, Salesforce, Google and T. Rowe Price. The information is readily available for viewing and you can download the full list of their current held stocks.

And at the same time, you are probably late again when you see them.

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