Overperforming Financial Markets With The Power Of Artificial intelligence!
Investing is the surest way of increasing one’s income without taking on additional duties. All the while also protecting their current wealth against inflation. However, capital investment is a double-edged sword because 90% of investors end up losing capital rather than growing it (Economica.org.uk, 2020). Challenges faced in making investments are a lot, which should be overcome so that there is more profit and less loss.
Some of the challenges are, volume and speed of information, human brain has a limited capacity to store or process data, so It is important in finding the right source and the reactionary market to invest properly in the right place. The choices we make, the role of advertising, have a huge impact on how our investment progresses. It is also important to be aware of unknown risks, limited capital, over diversification and bad timing. Where as not getting help and not getting the finances in order can ruin the business.
Current state of the financial markets
Financial markets are set by the basic forces of supply and demand, which is easy to understand: the higher the demand or/and the lower the supply, the higher the price.
The problem is that they depend on hundreds of factors, which are impossible to aggregate for the individual trader. Stock prices and currency exchange rates fluctuate constantly. Stocks are very volatile, turbulent and unpredictable because of the continuous flow of news, announcements, international data points, etc. Not knowing market conditions will reduce the ROIs or even magnify losses.
Volatility of Crypto
Cryptocurrencies have certainly become a hot new trend in the last decade. Contrary to all the benefits that they bring, we need to remember their major downside: One second, the prices are as high as the can be because of the publicity and hype, and a moment later, they crash terribly. The volatility and unpredictive nature of cryptocurrencies can be justified by the following examples from the history:
Do Investors Make Or Lose Money?
Let’s look at the data!
According to Statista, the global 2022 stock market is worth $105,000,000 ($105 trillion) while, the global 2022 Foreign Exchange market is worth $2,409,000,000 ($2409 trillion). $6.6 trillion on average every day is traded on foreign exchange markets. Considering this, many traders jump on this bandwagon with some get-rich-quick expectations. Unfortunately, 90% of people lose money in the stock market, including both new as well as seasoned veterans (Economica.org.uk, 2020). On the other hand, 71% of retail forex traders lose money when trading forex (CompareForexBrokers, 2022: Forex Risk). Wouldn’t you be better off just saving up your money? That’s a good idea, sure. Only, you didn’t consider…
The Big Bad INFLATION!
You can save up all you want, but with inflation, your buying power gets weaker every day… According to the statistics, government statistics, the inflation rate in the USA increased ten-fold from 2014 to 2022, rising up to 8,2% in September 2022. The primary reasons for such an increase were pressure on the demand or supply side of the economy, money supply policies, too few goods available on the market, and even consumer expectations. According to the European Central Bank’s statistics, in European Union, the inflation rate increased like crazy in the past 10 years to reach 9.9% in September 2022. This inflation is driven by energy woes in the EU, which for years relied heavily on Russian oil, natural gas, and coal to help power cars, factories, heating systems, and electricity. Would you like to be losing that much of your savings every year? Surely not!
So what to do? Invest!
According to S&P 500, the average annual return was 18.02% in 2020 and 28.47% in 2021, but if we take into account the inflation, they are not as impressive (Investopedia: 2022). Let’s discuss some of the most popular stock indexes around the world. Dow Jones (US30) is a stock market index of 30 companies listed on stock exchanges in the United States. It is one of the most followed equity indices. The index is the second oldest in the U.S. and its average annual return from the last 10 years is 15.03%. The EURO STOXX 50 is a stock index of 50 stocks from 11 countries in the Eurozone. The index has a fixed number of components and is part of the STOXX blue-chip index family which returned an average annual return of 2.37% in the last 10 years. Finally, FTSE All-World is an international equity index, that tracks stocks from developed and emerging markets worldwide. It covers 90-95% of the investable market capital with an average annual return of 9.10%.
Those are pretty decent numbers, but is that really the best return that one can bank? Surely not!
TURING FUND: The one and only rational investment alternative
Turing Fund is an investment fund established by experienced traders who have constantly been overperforming traditional investments and indices. Since 2014 our team has been developing and testing multiple investment strategies that laid fundamentals to design algorithms, dealing with hundreds of variables.
Our algorithm, driven by Artificial intelligence, uses robo-advisors to analyze millions of data points and execute trades at the optimal price. It uses advanced predictive models to forecast future prices with great accuracy and trades assets efficiently, which mitigates risks and provides high returns. However, the most important is that it: