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AppliedTechStuff t1_jefps5s wrote

AI will NOT make investing more profitable. Ultimately, it will make "alpha" nearly impossible to find.

Remember how you used to be able to pick stocks and outperform the market? Once everyone adopts the same strategies, alpha disappears.

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GodAndGaming123 OP t1_jefspt5 wrote

That's what I'm worried about. It will remove all opportunity

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peadith t1_jeghif1 wrote

Seems like it could be capable of forcing legitimate investment.

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GodAndGaming123 OP t1_jegkcd0 wrote

You mean like taking actual ownership of the company that grows in value alongside its performance?

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peadith t1_jegmi5j wrote

Yeah, that kind of stuff. Maybe you even believe in what the company is doing and are in it for the long ride instead of yanking your money in and out trying to game the whole thing.

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acutelychronicpanic t1_jegav3n wrote

It'll make investing really easy and it will make gains more predictable. If there is no arbitrage opportunity because the market is so efficient, then all investments would be roughly equal and the only differences in return would reflect irreducible risk relative to the market.

All investing will be more profitable at the expense of the margins of high performing investors.

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