Is AI worth investing in?
Moreover, what is the future of “Al investing”?
In the development of investment methods in the entire capital market, fundamental analysis, technical analysis, traditional quantitative analysis, and the booming alternative data investment have emerged. Moreover, in my opinion, the future of Al investment must be in the direction of alternative investment!
Furthermore, I made a comparison of several mainstream investment methods, as shown in the following figure:
Taking the Chinese market as an example. The growth rate of active quantitative funds in the past five years has been strong. Moreover, from 274 billion yuan in 2016 to 2,094.9 billion yuan in 2021. With a CAGR of 40.4%, and the overall risk response strategy and exposure are adjusted in a timely manner. After that, the scale of quantitative investment should maintain the current growth rate, reaching a scale of over 8 trillion yuan in 2025.
In the case of alternative investments. Thasos, Co.Ltd found that Tesla saw a 30% increase in overnight shifts in the third quarter of 2018, predicting a surge in Tesla’s production in Q3. Furthermore, facts verify that Tesla’s model3 production doubled in Q3, and Tesla’s stock price rose 9% on the day of the announcement.
Lastly, to sum up, the future of Al investment may focus more on traditional high-frequency quantitative trading and emerging alternative data quantitative investment.