MORGAN CHASE'S AI AGENT RAN A 60/40 PORTFOLIO IN RETURN

ON 10 JULY, BLOOMBERG REPORTED THAT MORGAN CHASE RESEARCHERS HAD BUILT A NUMBER OF AI INVESTMENT AGENTS THAT COULD BE ADAPTED TO MARKET CONDITIONS FOR DYNAMIC CONFIGURATION BETWEEN STOCKS AND BONDS. IN RETURN, THE BEST-PERFORMING AI PROXY ANNUALIZED RATE OF RETURN OVER THE PAST TWO DECADES WAS 0.7 PERCENTAGE POINTS HIGHER THAN THE TRADITIONAL 60/40 PORTFOLIO AND LOWER VOLATILITY, WHILE AT THE SAME TIME BETTER THAN THE MORGAN CHASE RULE-DRIVEN MARKET-STATE MODEL. RESEARCHERS POINT OUT THAT THE RESULT IS A HISTORICAL SIMULATION RATHER THAN A PHYSICAL INVESTMENT, WARNING THAT IT SHOULD NOT BE SEEN AS EVIDENCE THAT AI CAN CONTINUE TO WIN THE MARKET, AND EMPHASIZING THAT “AGENT AI NEEDS TO BE BASED ON A WELL-THOUGHT-OUT ASSET ALLOCATION PROCESS RATHER THAN ON THE NAIVE ASSUMPTION THAT THE AGENT ITSELF CAN BECOME A SOURCE OF KNOWLEDGE IN THE FIELD”。