May 12, 2022

Artificial intelligence doesn’t help in stock investing



Algorithms and intelligent software can help with various aspects of life and work, but stock investing isn’t one of them, as Dr. Hermann J. Stern explained on April 29th, during one of Obermatt’s weekly online coffee chat stock discussions.

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Can complex AI software compete with professional investors? It appears not, because its opponents are professional investors who shape the market and the prices.

As there is no exact formula for making profits and investors need to study all the stocks they are trading (e.g. read the news, analyze the management structures, compare the peers, follow the financials), there is no software that can do all this automatically. So, no easy money, unfortunately.

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