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San Francisco, CA – October 24, 2024 – Today, alphaAI is thrilled to announce the official launch of its public beta, marking a significant milestone in its mission to revolutionize the way individuals invest. As an AI-driven investment platform, alphaAI quantitative, high-upside investment strategies that dynamically adjust to market conditions in real-time.
The public beta release introduces a fully functional web app where users can benefit from a personalized investment experience like no other. The platform’s intelligent onboarding process evaluates each user’s investor profile, goals, and risk tolerance, delivering a personalized investment strategy that keeps portfolio volatility and drawdowns within a user-defined range. To do that, this industry-leading technology adjusts dynamically to market movements, maximizing gains during strong periods and protecting against losses in weaker markets. Uninvested cash is automatically allocated to alphaAI’s Smart Stash feature, which earns 6.61% APY (at the time of writing), the highest yield in the market.
Key Features of alphaAI’s Public Beta:
- Personalized Onboarding: alphaAI’s system quickly assesses your investor profile, goals, and risk appetite to craft a bespoke investment strategy.
- Quantitative, High-Upside Investment Strategies: alphaAI caters to investors with a higher risk appetite who are looking for larger potential gains than other automated investment products on the market.
- Dynamic Portfolio Management: alphaAI’s proprietary Investment AI continually monitors the market and automatically adjusts portfolios in real-time to capitalize on opportunities and manage risk.
- Smart Stash: alphaAI users automatically earn 6.61% APY (at the time of writing) on uninvested cash.
- Market Risk Monitor: Real-time market risk scores powered by billions of data points from every US-listed stock.
- Full Transactional Functionality: Investors can easily deposit, withdraw, and set up automatic contributions — all within the app.
“We built alphaAI to give every investor access to quantitative investment strategies typically reserved for those on Wall Street,” said Richard Sun, founder and CEO of alphaAI. “We believe investing should be smart, responsive, and easy. Our AI takes care of the heavy lifting, so our users can focus on their goals while we handle market changes.”
A Smarter Way to Invest. Unlike traditional robo-advisors that only focus on portfolio construction, alphaAI goes further by also automating risk management and real-time portfolio adjustments. With alphaAI, investors can rest easy knowing their portfolios are optimized for every market environment — whether it’s an aggressive stance during strong markets or a defensive posture during volatile periods.
Join the Public Beta Today. alphaAI invites all progressive investors who believe in the future of AI-driven finance to join the public beta. Users can try the platform for free and experience a smarter, more responsive way to invest. To celebrate the launch, alphaAI is offering a one-week free trial plus an exclusive 44% discount on a six-month subscription.
For more information, visit www.alphaai.capital today.
About alphaAI:
alphaAI is an innovative AI-driven investment platform that automates portfolio management by dynamically adjusting to market conditions. Founded by former Wall Street hedge fund analyst Richard Sun, alphaAI’s mission is to make sophisticated investment strategies accessible to everyone. With industry-leading technology and data-driven processes, alphaAI provides investors with a smarter, more responsive investment experience.
Media Contact:
Email: media@alphaai.capital
Website: www.alphaai.capital
Using Quiver Quantitative’s Fear and Greed Index to Manage Leveraged ETF Volatility For More Successful Investment Outcomes
A Study by alphaAI
Richard Sun
May 22, 2024
Intro to Leveraged ETFs
Leveraged exchange-traded funds (ETFs) have long been in the portfolios of risk-tolerant investors seeking magnified gains. Leveraged ETFs typically use financial derivatives and debt to amplify the returns of an underlying index. While a traditional ETF seeks to track its underlying index on a 1:1 basis, a leveraged ETF may aim to track at a 2:1 or 3:1 ratio 1. This means that if the underlying index returns 1% over some period of time, the corresponding 3:1 leveraged ETF will return roughly 3% over the same period of time. Some variances will occur, and leveraged ETFs are also subject to volatility drag 2, but these are topics that will be covered in a separate study.
For the remainder of this study, the leveraged ETF we will specifically refer to is TQQQ. TQQQ is the ProShares UltraPro QQQ ETF and seeks daily investment results, before fees and expenses, that correspond to three times the daily performance of the Nasdaq-100 Index 3. TQQQ is one of the most popular leveraged ETFs on the market, with assets under management (AUM) in excess of $22 billion and an average one-month trading volume in excess of $60 million 4. Since the ETF’s inception in 2010, it has returned an average of 42.7% annually. In the last year alone, TQQQ returned 121.3%, compared with its underlying index, the Nasdaq-100, which returned 39.6% in the same time period (data as of 3/31/24) 5.
Volatility as a Measure of Risk
The primary challenge with TQQQ, and leveraged ETFs in general, is their extremely high volatility. This volatility, in turn, can lead to amplified losses. Since TQQQ aims to track the Nasdaq-100 at a 3:1 ratio, both gains and losses are magnified by roughly three times, with losses often being more pronounced due to volatility drag.
To quantify this problem, we will use volatility, a statistical measure of the dispersion of returns for a given security, fund, or investment strategy 6. Volatility is often measured as the annualized standard deviation of returns of the security in question, which is, in this case, TQQQ. You calculate volatility by finding the standard deviation of the returns and then adjusting it by the square root of the time horizon. For example, if you had the daily returns of an ETF in Excel, you would first calculate the standard deviation of those returns with the STDEV function. Next, you would multiply the result by sqrt(252) to get the ETF’s annualized volatility. We use 252 because there are 252 trading days in a year 7.
The Nasdaq-100 has an average annual volatility of roughly 28% (calculated based on daily returns since December 1998). In a normal distribution, 68% of the data falls within one standard deviation of the mean, and 95% of the data falls within two standard deviations of the mean. Although security returns are not necessarily normally distributed (a topic for a different study), this is the framework we will use to interpret volatility. So if you invested $1,000 in the Nasdaq-100, a volatility of 28% means that there is a 68% chance your portfolio value after one year will be within $720 and $1,280 and a 95% chance it will be within $440 and $1,560. The bottom line is that higher volatility is associated with a higher potential for gain but also a higher potential for loss. For reference, the S&P 500, the most widely used benchmark for the market, has an average annual volatility of roughly 17% (calculated based on daily returns since January 1990). Investors with a lower risk tolerance typically target portfolio volatility below 17%, while those with a higher risk tolerance typically seek volatility in excess of 17%. The best-performing investment strategies aim to deliver returns above the level of volatility taken on. One way of quantifying risk-adjusted return is through the Sharpe Ratio, which we will take a look at later on 8. Another metric we will discuss later is alpha, or an investment strategy’s ability to beat its benchmark 9.
The Problem with Leveraged ETFs
We have already established that the most significant problem with TQQQ is its high volatility. Since its inception, TQQQ has had an average annual volatility of roughly 61%. This means there is a 68% chance you could see returns between -61% and +61% in any given year. With higher volatility comes higher drawdowns, too. For example, in 2022, TQQQ lost nearly 80%. In an exceptionally bad year, TQQQ investors could stand to lose nearly 100% of their investment due to magnified losses combined with the daily rebalancing mechanics of leveraged ETFs and volatility drag.
This level of risk is simply not feasible for investors, nor is it recommended by alphaAI under any circumstance. So, the question remains: How can investors effectively take advantage of the magnified return characteristics of leveraged ETFs while controlling volatility and drawdowns? In the next section, we will introduce alphaAI’s approach to volatility management.
How alphaAI Approaches Volatility Management
At alphaAI, our automated investment strategies are based primarily on exposure management. Exposure is defined as the percentage of your portfolio you have invested at any given time. For example, an exposure of 50% would indicate that 50% of your portfolio is invested and 50% is held in cash. Exposure management is an extremely effective way to manage volatility since the less exposed an investor is, the lower that investor’s volatility will be. The idea behind exposure management is simple: We want more exposure when market conditions are favorable and less exposure when conditions are weak. However, the execution is the most difficult aspect.
We solved this problem by developing proprietary signals that we use to manage exposure. If you are unfamiliar with our AI system and the machine-learning (ML) techniques we used to build it, I recommend checking out our technology overview and our two-part series on ML for stock trading. At a high level, our AI system consists of multiple predictive models that are trained on multiple decades of data for over 10,000 global stocks. On average, each model is trained on more than 10 billion data points. Each model is trained to perform a unique predictive capability, and multiple models work together to make trading decisions 10. Our models work together to generate signals that quantify the level of risk in the market, and we use those signals to manage exposure in an automated and systematic way. Our system will be discussed in more depth in future studies.
As time passes, the market continues to generate data and correlations that have never been present before. This is why it’s impossible for a single signal to be effective 100% of the time. Thus, we recommend that our clients diversify their portfolios by running investment strategies based on multiple different signals. The probability of successful and consistent investment outcomes greatly increases when multiple signals are used together, as they cover each other’s weaknesses 11, 12. Our default strategy at the time of writing is based on the signals of over 100 different models, which greatly contributes to how we’ve produced market-beating results since our inception.
Thus, we continually develop and search for new signals to aid us. One signal that we’ve found particularly effective is Quiver Quantitative’s Fear and Greed Index.
Intro to Quiver Quantitative and the Fear and Greed Index
Quiver Quantitative is an alternative data provider catered to retail traders. Quiver aims to close the gap between institutional and retail traders by scraping alternative stock data from across the internet and aggregating it in a free, easy-to-use web dashboard 13. Access to more data enables retail traders to make more informed and, thus, better investment decisions. Some of Quiver’s most popular datasets cover trades made by members of Congress and company insiders.
Quiver’s Fear and Greed Index (F&G) tracks the relative bullishness or bearishness of discussion on the WallStreetBets forum. WallStreetBets is one of the largest investment-related subreddits, where participants discuss stock and options trading. It became notable for playing a major role in the 2021 GameStop short squeeze that caused major losses to some institutional funds and short sellers 14. F&G is created by using natural language processing (NLP) to gauge the sentiment on the WallStreetBets forum. F&G is quantified as a number between 0 and 100, with 100 indicating the maximum level of bullishness, 0 indicating the maximum level of bearishness, and 50 being the midpoint. The data history begins in August 2018 and extends to the present. A new value is generated daily based on the previous day’s data, i.e., the data is one day lagged 15.
Using Quiver Quantitative’s Fear and Greed Index to Manage Volatility
We hypothesize that using F&G to manage an investment strategy’s exposure level to TQQQ will yield a greater risk-adjusted return than a passive approach. Our analysis period will be from January 1, 2019, to April 29, 2024. We will compare the performance results of our risk-managed investment strategy using F&G (F&G Strategy) with a buy-and-hold approach of TQQQ (TQQQ Strategy) as well as a buy-and-hold approach of the S&P 500 (SPX Strategy).
Let’s first establish some baseline metrics. The TQQQ Strategy and the SPX Strategy yield the following results over the test time period:
As expected, the TQQQ Strategy yields a higher overall return than the SPX Strategy, but the volatility level of 66% corresponds to an unacceptable level of risk. Even more alarming is that the TQQQ Strategy experienced a 79% drawdown in 2022, rendering this strategy unfeasible for virtually all investors, regardless of their risk tolerance. For the level of risk taken, the TQQQ Strategy does not beat the SPX Strategy since the Sharpe Ratios for both strategies are the same (you can roughly think of the Sharpe Ratio as the return adjusted by the volatility).
Now, let’s describe the F&G Strategy. Our goal is to create a strategy that actively manages exposure to TQQQ in an automated and systematic way. We are targeting a portfolio volatility level of 30%, which roughly matches that of the Nasdaq-100 and is also the maximum level we are personally willing to accept as investors. To accomplish this, we propose a binary risk-on/risk-off approach that only trades TQQQ. When the value of F&G is 50 or greater (indicating relative bullishness), the strategy will be in its risk-on state, and exposure to TQQQ will be 70% of the portfolio’s value. When the value of F&G is below 50 (indicating relative bearishness), the strategy will be in its risk-off state, and exposure to TQQQ will be 20% of the portfolio’s value. The excess portfolio value will be held in cash and can be invested in a high-yielding money market or treasury fund to provide steady dividend income and further boost returns (this aspect will not be discussed in this paper).
When we run this strategy, we see a significant improvement in the investment outcome when compared to a passive approach:
Compared to the SPX Strategy, the F&G Strategy delivered greater overall returns and, more importantly, greater risk-adjusted returns, as illustrated by a Sharpe Ratio that is more than 60% better. Even more impressive is the F&G Strategy’s staggering 13.6% of alpha generated, indicating that the actions taken by our automated risk management system significantly contributed to our strategy’s outperformance over a buy-and-hold approach. Compared to the TQQQ Strategy, the volatility of the F&G Strategy was significantly lower and stayed below our target 30% range. More importantly, the drawdown in 2022 was reduced by more than half, from 79% to 34%, which is within our acceptable range. The bottom line is that using the F&G Index as a signal to manage risk resulted in a significantly better risk-adjusted return over a passive, buy-and-hold approach.
Below are some additional charts for your reference:
Conclusion
We conclude that using the F&G Index as a signal to manage risk resulted in a significantly better risk-adjusted return over a passive, buy-and-hold approach. Compared to the TQQQ Strategy, which was unfeasible due to its extremely high level of volatility and drawdowns, the F&G Strategy was viable and brought volatility and drawdowns into a controllable and expected range. Compared to the SPX Strategy, the F&G Strategy yielded significantly greater risk-adjusted returns and generated positive alpha.
It’s important to note that you, as an investor, will likely have a different level of risk tolerance. The parameters of the F&G Strategy, such as TQQQ exposure, can be adjusted so that volatility and drawdowns match your expectations, which is exactly what alphaAI helps you do in an automated way.
As previously discussed, as time passes, the market continues to generate data and correlations that have never been present before. This is why it’s impossible for a single signal to be effective 100% of the time. Thus, we recommend that our clients diversify their portfolios by running investment strategies based on multiple different signals. We recommend running a version of the F&G Strategy in addition to the other strategies offered by alphaAI. As of the time of writing, alphaAI’s default strategy is based on the signals of over 100 different models. Diversification of a portfolio’s strategies to multiple signals, including F&G, leads to improved investment outcomes over the long run.
If the types of investment systems described in this paper appeal to you, please consider checking out alphaAI and Quiver Quantitative. Don’t hesitate to reach out if you have any questions or feedback: support@alphaai.capital
References
- https://www.investopedia.com/terms/l/leveraged-etf.asp
- https://www.etf.com/sections/etf-basics/why-do-leveraged-etfs-decay
- https://www.proshares.com/our-etfs/leveraged-and-inverse/tqqq
- https://etfdb.com/etf/TQQQ/#etf-ticker-profile
- https://www.proshares.com/globalassets/proshares/fact-sheet/prosharesfactsheettqqq.pdf
- https://www.investopedia.com/terms/v/volatility.asp
- https://www.alphaai.capital/journal-entries/volatility-standard-deviation-why-should-you-care
- https://www.alphaai.capital/journal-entries/sharpe-ratio-risk-adjusted-returns-tell-a-different-story-than-absolute-returns
- https://www.alphaai.capital/journal-entries/alpha-the-holy-grail-of-investing
- https://www.alphaai.capital/journal-entries/our-technology
- https://www.neuravest.net/the-benefits-of-a-multi-strategy-investment-approach-2/
- https://www.investopedia.com/articles/trading/09/quant-strategies.asp
- https://www.quiverquant.com/aboutus/
- https://en.wikipedia.org/wiki/R/wallstreetbets
- https://www.quiverquant.com/fearandgreed/
The Santa Claus Rally, a term coined in the early 1970s by Yale Hirsch of the Stock Trader's Almanac, refers to the typically observed rise in stock prices during the last week of December and the first few trading days of January. This intriguing phenomenon has garnered significant attention from investors and economists due to its historical significance and the intriguing patterns it presents.
Historical Context of the Santa Claus Rally
The concept of the Santa Claus Rally has intrigued investors and market analysts for decades. First identified and named in the early 1970s by Yale Hirsch, the creator of the Stock Trader's Almanac, this phenomenon refers to a tendency for stock markets, particularly major indices like the S&P 500, to experience gains during the last week of December through the first few trading days of January. This period, often characterized by festive cheer and holiday spirit, has consistently shown a notable, albeit short-lived, positive impact on the stock market.
Historical data since 1950 reveals that the S&P 500 has, on average, gained about 1.3% during this brief rally period. This increase is significant, especially considering the rally's limited duration, typically encompassing just over a week of trading. This pattern suggests that the rally is not merely a random occurrence but a recurring trend that has captured the attention of the financial world.
Observations and Consistency Over Time
The Santa Claus Rally is not an isolated or irregular event but has shown remarkable consistency over time. In the last 27 years, the phenomenon has occurred approximately 67% of the time, reinforcing the notion that this rally is a reliable seasonal trend in the stock market. Such a pattern is particularly striking given the various economic cycles and market fluctuations experienced over these decades, including periods of recession, market booms, and technological advancements that have transformed trading practices.
The rally's consistent occurrence raises questions about its underlying causes. Some speculate that the trend could be attributed to factors like year-end bonus investing, reduced trading volume due to the holiday season, and tax-related portfolio adjustments. Others suggest that general market optimism during the holiday season could contribute to this trend. While the exact reasons remain a subject of debate, the historical data underscores the Santa Claus Rally as a notable and recurring feature in the stock market's seasonal behavior.
The Digital Age and Globalization
Changing Dynamics in the Era of Online Trading
The Digital Age has significantly influenced the dynamics of the Santa Claus Rally. With the advent of online trading platforms, there has been a democratization of stock market access, allowing a more diverse range of investors to participate in trading activities. This shift has led to a change in the way traditional market patterns, including the Santa Claus Rally, manifest. The ease of trading, coupled with instantaneous access to financial data and news, has enabled traders around the world to react quickly to market trends and global events. As a result, the once-predictable patterns of the Santa Claus Rally may now be influenced by a wider array of factors, potentially diminishing its consistency and impact.
Globalization and Its Impact
Furthermore, globalization has interconnected financial markets like never before. Events in one part of the world can have immediate and significant repercussions in others, leading to a more synchronized global market reaction. This interconnectedness means that traditional seasonal market trends, such as the Santa Claus Rally, could be altered or overshadowed by international economic, political, or social events. As investors from different parts of the world bring their own perspectives and reactions to global developments, the collective impact on the stock market during the holiday season might display new characteristics or diverge from historical patterns.
Statistical Analysis of the Santa Claus Rally
Insights from Historical Data
A detailed examination of historical data on the Santa Claus Rally provides valuable insights into this phenomenon. Statistically, certain years have demonstrated notably strong rallies, particularly during periods of economic recovery or post-crisis rebounds. For instance, the end of 2008 and the beginning of 2009 marked a period of significant recovery from the global financial crisis. During this time, major indices like the S&P 500 experienced robust rallies, reflecting the market’s response to broader economic recovery efforts and improved investor sentiment. Such instances underscore the influence of macroeconomic conditions on the magnitude and occurrence of the Santa Claus Rally.
Variability and Economic Conditions
The variability in the strength and occurrence of the Santa Claus Rally across different years highlights the influence of broader economic conditions on this trend. While the rally has been a recurring phenomenon, its intensity can vary greatly depending on the prevailing economic environment. For example, during years of economic prosperity or recovery, the rally tends to be more pronounced, while in years of economic downturn or uncertainty, its impact may be muted or less consistent. This variability suggests that while the Santa Claus Rally has historical precedence, it is not immune to the effects of larger economic and market forces, making it an interesting but complex pattern to analyze for investors and market strategists.
Global Perspectives on the Santa Claus Rally
International Occurrence
The Santa Claus Rally is a phenomenon that extends beyond the borders of the United States, with similar trends observed in various global markets. This consistency across different countries and economic environments suggests that the rally might be driven by a common psychological effect associated with the holiday season. This worldwide occurrence underlines the universality of certain investor behaviors and sentiments, transcending cultural and geographical boundaries.
Interconnectivity of Markets
These observations are crucial in understanding the interconnectivity and interdependence of global financial markets. The shared investor sentiment during the holiday season can lead to similar market behaviors across different countries, reinforcing the idea that stock markets are not just influenced by local factors but also by global investor psychology and trends. This global perspective on the Santa Claus Rally highlights the importance of considering international market dynamics when analyzing seasonal trends.
Critiques and Counterarguments
The Self-Fulfilling Prophecy Argument
Some market analysts and experts view the Santa Claus Rally as more of a self-fulfilling prophecy than a phenomenon grounded in fundamental market analysis. They argue that the expectation of a rally itself may drive investor behavior, leading to increased buying and thus artificially inflating stock prices during this period. This perspective suggests that the rally may be driven more by collective investor psychology and expectations rather than concrete economic or financial factors.
Comparisons with Other Market Periods
Other critics of the Santa Claus Rally point to analyses showing that the market's performance during this period is not significantly different from other times of the year when adjusted for factors like volatility and other market conditions. They contend that the perceived rally may simply be part of the market's normal fluctuations and not a distinct or reliable trend. This argument underscores the importance of comprehensive market analysis and cautions against over-reliance on seasonal trends for investment strategies.
Practical Implications for Investors
For investors, the Santa Claus Rally presents both an opportunity and a caution. While historical data indicates a likelihood of market gains during this period, it is essential to consider this trend in the context of broader market dynamics and individual investment strategies. The rally, though consistent, should not be seen as a guaranteed annual occurrence and certainly not as the sole basis for investment decisions.
Takeaways:
The Santa Claus Rally is a fascinating example of how sentiment and psychology can influence financial markets. While it offers historical patterns of gains, investors should approach it with caution and consider it as one of many factors in a comprehensive investment strategy. In today's digitally-driven and globalized market, tools like alphaAI play a crucial role in helping investors navigate through these seasonal trends and beyond using the help of advanced technologies as well as tested strategies.
For more in-depth historical data and analysis on the Santa Claus Rally, resources like Wikipedia, OpenMarkets by CME Group, Seeking Alpha, and Yahoo Finance offer comprehensive insights and perspectives.
Welcome to our Friday Finance Fix Newsletter, where we bring you the latest updates on key financial developments shaping the economy and markets.
Nike's Strategic Cost-Cutting and Layoff Plans
Nike, a renowned global sneaker brand, has announced significant strategic changes in its business model. In a move to streamline operations, the company plans to cut up to $2 billion in costs. This plan involves simplifying their product assortment and increasing automation. However, it comes with a significant human cost, as Nike has yet to specify the exact number of job cuts, which are expected to lead to restructuring charges estimated between $400 million and $450 million, primarily due to employee severance costs.
Despite these changes, Nike's financial health appears robust. The company reported a 19% annual increase in net income, totaling $1.6 billion, and a revenue of $13.4 billion, which is slightly higher than the previous year. Additionally, Nike's gross margin has improved, ending a six-quarter decline.
Economic Growth and Rate Cut Speculations
The U.S. economy showed slower growth last quarter than initially estimated, with the GDP growing at a 4.9% annualized rate. However, this slowdown brings a silver lining: the Federal Reserve is nearing its 2% target for inflation, leading to a pause in interest rate increases. The labor market remains resilient, with jobless claims slightly rising to 205,000, still near historic lows.
Coinbase: The Amazon of Crypto
JMP Securities has given a strong endorsement to Coinbase, likening it to Amazon in its early days. They raised their price target for Coinbase to $200 from $107, reflecting a 19% upside potential. The optimism is partly due to Coinbase's positioning as a leader in the burgeoning digital asset economy. Coinbase's stock has seen a dramatic surge, closely tied to the evolving cryptocurrency landscape.
The Santa Claus Rally Phenomenon
As the year ends, the financial markets enter the Santa Claus rally period, historically associated with an average gain of 1.3% on the S&P 500. This phenomenon, recognized since 1950, often results in higher stock market returns during the last five trading days of one year and the first two of the next. The rationale behind this trend includes a mix of year-end optimism, new money inflows, and reduced institutional trading.
Consumer Spending Trends: Experiences over Presents
The holiday spending trend in the U.S. is shifting, with consumers increasingly spending on experiences rather than physical gifts. This year, Americans are expected to spend nearly $1 trillion during the holiday season, with a notable increase in expenditure on dining, entertainment, and events, as reported by The Wall Street Journal. The National Retail Federation anticipates this year to mark the 15th consecutive year of increased holiday spending.
What about alphaAI?
In any investment endeavor, the key to success lies in making informed decisions. Whether you're building a recession-resistant portfolio, diversifying your assets, or simply exploring new opportunities, your journey should be guided by knowledge and insight. At alphaAI, we are dedicated to helping you invest intelligently with AI-powered strategies. Our roboadvisor adapts to market shifts, offering dynamic wealth management tailored to your risk level and portfolio preferences. We're your trusted partner in the complex world of finance, working with you to make smarter investments and pursue your financial goals with confidence. Your journey to financial success begins here, with alphaAI by your side.
The fintech landscape has undergone a dramatic transformation in recent years, largely driven by the advent and integration of Artificial Intelligence (AI). Once characterized by online banking and straightforward digital payment solutions, the sector is now at the forefront of technological innovation. AI's entry into this space marks a significant paradigm shift, transitioning from digital convenience to sophisticated, AI-enhanced financial operations. This section will explore how AI is not just augmenting but fundamentally changing how financial services operate, highlighting key historical shifts and the implications of AI integration for the future of finance.
The Evolution of Fintech and AI
Historical Perspective: From the early days of online banking to the current landscape dominated by mobile banking apps and digital wallets, fintech has continuously evolved. The introduction of AI represented a quantum leap, enabling complex decision-making processes and sophisticated data analysis.
Statistical Analysis: The Global Fintech Report reveals that 65% of traditional financial institutions increased their AI investments since 2015, with a significant surge observed post-2020. AI investment in fintech reached a milestone in 2022, surpassing $60 billion globally, indicating the sector's growing reliance on AI technologies.
AI-Driven Innovations in Fintech
RobaAdvisors: Roboadvisors, like alphaAI, manage money in assets, offering automated, personalized investment advice based on algorithmic strategies. The user-friendly platforms have democratized investment, making financial advice accessible to a broader audience.
Fraud Detection and Security: AI systems like IBM's Watson and Darktrace are revolutionizing fraud detection by analyzing transaction patterns and predicting fraudulent activity with greater accuracy than ever before.
Algorithmic Trading: AI in algorithmic trading is transforming market dynamics, with systems capable of analyzing vast amounts of data to make split-second trading decisions, thus impacting the market's efficiency and liquidity.
Predictive Analytics and Customer Insights
In-Depth Case Studies: For example, American Express uses AI to scrutinize transaction data, enhancing fraud detection and customizing customer rewards. This approach has not only improved security but also customer engagement and loyalty.
Customer Experience: Banks are utilizing AI to offer more personalized services. For instance, Bank of America's AI-driven virtual assistant, Erica, provides personalized financial guidance to millions of customers, enhancing user experience and financial management.
The Role of Big Data in AI-Driven Fintech
Data Sources and Management: Fintech companies are harnessing data from varied sources, including social media, IoT devices, and transaction histories, to feed their AI algorithms. The management of this data is crucial, requiring sophisticated data processing and storage solutions.
Challenges and Solutions: While big data presents immense opportunities, it also raises significant privacy concerns. Advanced cryptographic techniques, such as homomorphic encryption, allow for the processing of encrypted data, ensuring privacy while utilizing AI.
Regulatory Landscape for AI in Fintech
Global Perspective: Different regions are adopting varied approaches to AI in fintech. For example, the EU's GDPR focuses on data privacy, while the US's Dodd-Frank Act addresses financial stability and consumer protection.
Future Regulatory Predictions: Experts predict an emergence of more cohesive international regulatory standards, focusing on ethical AI usage and data protection, to foster global fintech growth while mitigating risks.
Investment Trends in AI-Driven Fintech
Venture Capital Analysis: The investment landscape for AI-driven fintech has evolved, with a notable shift towards early-stage startups. In 2023, early-stage investments constituted over 40% of all fintech AI funding.
Impact of COVID-19: The pandemic accelerated digital adoption in fintech, with a 70% increase in the use of digital banking services, thereby fueling more investments in AI to cater to the growing demand for digital financial solutions.
Case Studies: Success Stories and Failures
Success Stories: Ant Financial's use of AI in providing micro-loans and insurance has not only been profitable but also instrumental in financial inclusion in underserved markets.
Learning from Failures: Lendy's failure highlights the importance of scalable AI solutions and the need for compliance with evolving regulatory standards.
Future Predictions and Trends
Emerging Technologies: The intersection of AI with emerging technologies like blockchain and quantum computing is expected to further revolutionize fintech, offering more secure and efficient financial transactions.
The Role of Ethics and Social Responsibility
Ethical AI Development: The development of AI in fintech must adhere to ethical standards, focusing on transparency, accountability, and fairness to maintain consumer trust and market integrity.
Sustainable Investing and ESG: AI is increasingly being used to analyze ESG data, aiding in the promotion of sustainable investing and responsible financial decision-making.
Takeaways
The synergy between AI, data analytics, and financial services is creating a new era in fintech. This convergence is expected to continue, leading to more innovative, efficient, and accessible financial products and services. Not to mention, unmatched technologies which help individual investors navigate downturns effectively. Want to learn more about the ever-changing blend of AI and finance? Learn more at our site.
Welcome to our Friday Finance Fix Newsletter, where we bring you the latest updates on key financial developments shaping the economy and markets.
The Market Rips After Fed Chair Powell Speech
The Dow Jones Industrial Average hit a record peak this week, propelled by Federal Reserve Chair Jerome Powell's year-end address. The central bank held interest rates steady at 5.25-5.5%, with hints of potential rate cuts in 2024. This signal, coupled with recent data indicating a slowdown in inflation, fueled optimism among investors, leading to a surge across all major indices. The Dow's year-to-date gain now impressively stands at 11.9%, outpacing broader market advances. Powell's cautious tone throughout the speech, focusing on achieving the 2% inflation target, suggests a carefully navigated path ahead.
The UAW Strike is Over and the Firings Begin
The United Auto Workers (UAW) strike against the big three auto manufacturers brought significant contract improvements. However, the financial repercussions are now emerging. GM announced 1,313 layoffs amid production cuts, while Stellantis plans to let go of 3,680 workers, partly blaming California's vehicle sales laws. Ford, though currently not initiating layoffs, is halving its EV production, hinting at potential job cuts. These layoffs are part of a broader trend, highlighted by Etsy reducing its workforce by 11%, underlining the financial strains of the strike and a dampened demand for EVs.
“Israel is Losing Support” According to Biden
In a significant deviation from his typically cautious diplomatic stance, President Biden openly urged Israeli Prime Minister Netanyahu to reconsider his approach to Gaza. Biden emphasized the necessity of involving the Palestinian Authority for a long-term solution, cautioning that Israel's current policy risks diminishing international support. Netanyahu stood firm against Hamas, highlighting his commitment to countering their influence in Gaza. The dialogue reflects a growing global concern over the conflict's direction and underlines the urgency of finding a sustainable peace path. National Security Advisor Sullivan echoed these sentiments, advocating for a two-state solution, a position Netanyahu currently opposes.
Warren Buffet Has His Eye on Occidental Petroleum Corp
Investment magnate Warren Buffet, through Berkshire Hathaway, has once again invested heavily in Occidental Petroleum Corp (OXY), acquiring a significant portion of the company. This move follows Occidental Petroleum's announcement of the $12 billion CrownRock acquisition, aimed at boosting oil and gas production. Buffet's investment has stirred the market, reflecting a broader trend of major oil companies consolidating resources, as seen with Exxon Mobil and Chevron's recent acquisitions. This development positions OXY as a formidable player in the oil and gas sector.
Google's App Store Monopoly Crumbles as Epic Wins a Victory
In a landmark decision, a jury found Google's app store practices, particularly its mandatory use of Google Play billing, illegal. This verdict, stemming from Epic Games' three-year legal battle, is hailed as a victory for app developers and consumers alike. It challenges Google's app store monopoly, potentially abolishing the 15-30% fees on app purchases, which could save developers an estimated $12 billion annually. While Google plans to contest the verdict, this ruling could significantly reshape the app store landscape across the Android platform.
What about alphaAI?
In any investment endeavor, the key to success lies in making informed decisions. Whether you're building a recession-resistant portfolio, diversifying your assets, or simply exploring new opportunities, your journey should be guided by knowledge and insight. At alphaAI, we are dedicated to helping you invest intelligently with AI-powered strategies. Our roboadvisor adapts to market shifts, offering dynamic wealth management tailored to your risk level and portfolio preferences. We're your trusted partner in the complex world of finance, working with you to make smarter investments and pursue your financial goals with confidence. Your journey to financial success begins here, with alphaAI by your side.
One of the perennial debates in investing revolves around choosing between broad-based exchange-traded funds (ETFs) and individual stocks. This discussion becomes even more intriguing when considering a technology-focused ETF like QTEC and a tech giant like Apple (AAPL), one of the ETF’s holdings. Each presents a unique set of advantages and considerations for investors. The key factors to help you decide whether to allocate your capital to the diversified QTEC or the individual powerhouse Apple are the benefits.
ETF Vs. Individual Stock
Before delving into the benefits of each investment option, let's understand the fundamental distinction between an ETF and an individual stock. An ETF, like QTEC, is a basket of various stocks that aims to track the performance of a specific index. On the other hand, investing in individual stocks, such as Apple (AAPL), means buying shares of a single company. The decision between the two boils down to your investment objectives, risk tolerance, and the level of involvement you desire in managing your portfolio.
The Benefits of QTEC
Diversification: QTEC offers instant diversification by including a wide range of technology stocks in its portfolio. This diversification can help spread risk and reduce the impact of any stock's poor performance.
Risk Mitigation: The broad exposure provided by QTEC helps mitigate risks associated with individual company performance, market volatility, or sector-specific challenges. This risk mitigation can be particularly appealing for investors looking for a more stable, long-term approach.
Convenience: For investors who prefer a hands-off approach, QTEC provides convenience. It allows you to gain exposure to the entire technology sector without the need to research and manage individual companies.
The Upside of Apple
Strong Growth Potential: Apple's track record of innovation and its ability to consistently introduce market-leading products give it significant growth potential. Investing in Apple means aligning with a company known for disrupting industries.
Dividends and Buybacks: Unlike many technology companies, Apple pays dividends and actively buys back its own shares. This can be attractive for income-oriented investors and indicates a level of confidence in the company and its future prospects.
Transparency: Owning individual stocks provides transparency into the specific company's financials, management decisions, and overall operations. This direct insight can be appealing to investors who want a deeper understanding of where their money is invested.
What Makes More Sense for Your Portfolio?
Now, the pivotal question is: What makes more sense for your portfolio? The decision hinges on your financial goals, risk tolerance, and investment strategy. If you prioritize stability, risk mitigation, and a hands-off approach, QTEC might be the better fit. However, if you are comfortable with higher volatility, have a longer-term investment horizon, and appreciate the growth potential of individual companies, then AAPL could align better with your objectives.
Takeaways
In the end, there is no one-size-fits-all answer. Consider your preferences, conduct thorough research, and potentially seek advice from financial professionals to make an informed decision. Whether you opt for the diversified approach of QTEC or the individual stock strategy with AAPL, remember that both avenues come with their unique opportunities and risks.
While the key is to always align your investment choices with your financial goals, it’s also good to have a helping hand. With alphaAI, smart investment decisions are the driving force of not only our strategies, but our technologies too. Whether it’s an ETF you want to dive into, a retirement portfolio you need help navigating, or just an overall adjustment to market turbulence, alphaAI is there to help. Learn more about us on our site.
Deep Dive into QTEC ETF and Individual Tech Stocks
Understanding QTEC ETF
QTEC, or the First Trust NASDAQ-100 Technology Sector Index Fund, is designed to track the performance of the NASDAQ-100 Technology Sector Index. This ETF includes a diverse array of technology companies, providing investors with broad exposure to the tech sector. The diversification inherent in QTEC helps mitigate the risks associated with investing in individual stocks, as the performance of the ETF is not overly reliant on any single company.
Key Advantages of QTEC ETF
1. Broad Exposure: By investing in QTEC, you gain exposure to a wide range of technology companies, from established giants to emerging innovators. This broad exposure can help balance the risks and rewards within your portfolio.
2. Lower Volatility: The diversification within QTEC can lead to lower volatility compared to investing in individual stocks. This can be particularly beneficial during periods of market turbulence, as the performance of the ETF is less likely to be significantly impacted by the performance of any single company.
3. Cost Efficiency: Investing in a single ETF like QTEC can be more cost-effective than purchasing multiple individual stocks. This is because ETFs typically have lower expense ratios compared to mutual funds and do not require the same level of transaction fees as buying individual stocks.
The Case for Individual Tech Stocks
Investing in individual tech stocks, such as Apple, allows investors to potentially benefit from the significant growth of a single company. This approach can be rewarding, but it also comes with higher risks.
1. Potential for High Returns: Individual stocks can offer the potential for high returns, especially if the company experiences significant growth. For example, Apple's stock has seen substantial appreciation over the years, rewarding long-term investors.
2. Direct Ownership: Owning individual stocks provides direct ownership in the company, allowing investors to participate in shareholder meetings and vote on important company decisions. This level of involvement can be appealing to those who want a more hands-on approach to investing.
3. Focused Investment: Investing in individual stocks allows for a more focused investment strategy. If you have strong conviction in a particular company's future prospects, investing directly in that stock can provide a concentrated exposure to its potential growth.
Balancing Your Investment Strategy
When deciding between QTEC ETF and individual tech stocks, it's essential to consider how each fits into your overall investment strategy. A balanced approach might involve a combination of both, leveraging the diversification of QTEC while also taking advantage of the growth potential of individual stocks like Apple.
1. Risk Management: Diversifying your investments across both ETFs and individual stocks can help manage risk. While QTEC provides broad exposure and mitigates the impact of any single company's poor performance, individual stocks can offer higher returns but come with increased risk.
2. Investment Horizon: Your investment horizon plays a crucial role in determining the appropriate mix of ETFs and individual stocks. If you have a longer-term investment horizon, you might be more comfortable with the volatility of individual stocks. Conversely, if you prefer a more stable, long-term approach, QTEC might be a better fit.
3. Financial Goals: Align your investment choices with your financial goals. If you seek steady growth and risk mitigation, QTEC offers a diversified approach. If you aim for higher returns and are willing to accept higher volatility, individual stocks like Apple can provide that opportunity.
Final Thoughts
Investing in technology-focused ETFs like QTEC and individual tech stocks such as Apple each come with their unique advantages and considerations. By understanding the benefits and risks associated with each, you can make informed decisions that align with your financial goals and investment strategy.
Whether you choose the diversified approach of QTEC or the focused investment in individual stocks, remember that both options offer opportunities for growth and come with inherent risks. Conduct thorough research, consider seeking advice from financial professionals, and always align your investment choices with your long-term financial objectives.
With the support of alphaAI, you can navigate the complexities of the investment landscape and make smart investment decisions. Whether you're looking to invest in ETFs, build a retirement portfolio, or adjust to market turbulence, alphaAI is here to help. Learn more about our strategies and technologies on our site.
Investors often find themselves facing various market scenarios that can significantly impact their portfolios. Two such phenomena that frequently make headlines in financial news are market corrections and bear markets. While both involve a market downturn, it’s crucial for investors to understand the differences between them and develop strategies that effectively navigate the challenges brought on by these periods.
Defining Market Corrections and Bear Markets
Market Corrections
A market correction is a short-term decline in stock prices, typically ranging from 10% to 20% from recent highs. Corrections are considered a natural part of market cycles and can be triggered by factors such as economic data releases, geopolitical events, or changes in investor sentiment.
Example: The market correction in early 2020, spurred by the COVID-19 pandemic, saw major indices drop by around 30% before rebounding.
Bear Markets
On the other hand, a bear market is a more prolonged and severe decline, with stock prices falling by 20% or more. Bear markets often coincide with economic recessions and can last for an extended period, causing significant concern among investors.
Example: The global financial crisis of 2008 resulted in a bear market, with major indices experiencing substantial losses over an extended period.
Recognizing Key Characteristics
Market Corrections
- Duration: Corrections are relatively short-lived, typically lasting for a few weeks to a few months.
- Sentiment: Investor sentiment tends to shift temporarily negative during corrections.
- Causes: Corrections can be triggered by specific events, but they are often seen as healthy adjustments in an upward-trending market.
Bear Markets
- Duration: Bear markets are prolonged, lasting for an extended period—sometimes a year or more.
- Sentiment: Pessimism and fear dominate investor sentiment during bear markets.
- Causes: Bear markets are often associated with broader economic downturns, financial crises, or structural issues within the market.
Navigating Market Corrections
Strategies
- Stay Informed: Keep abreast of economic indicators, earnings reports, and geopolitical events that could trigger a correction.
- Review Your Portfolio: Assess the risk exposure of your investments and consider rebalancing if necessary.
- Avoid Emotional Decisions: Resist the urge to make impulsive decisions based on short-term market movements.
- Managing Risk: Reduce exposure to higher-risk assets and increase exposure to defensive ones.
- Managing Net Exposure: Consider holding more cash to reduce overall exposure to assets.
Example: During a correction, an investor with a well-diversified portfolio might reassess their asset allocation, ensuring a balance of stocks and bonds aligned with their risk tolerance.
Navigating Bear Markets
Strategies
- Diversification is Key: A well-diversified portfolio can help mitigate losses across various asset classes.
- Evaluate Long-Term Goals: Reassess your financial goals and consider adjustments to your investment strategy if needed.
- Consider Defensive Investments: Explore defensive assets, such as bonds or gold, which may provide stability during bear markets.
- Managing Risk: Reduce exposure to higher-risk assets and increase exposure to defensive ones.
- Managing Net Exposure: Consider holding more cash to reduce overall exposure to assets.
Example: In a bear market, an investor might shift towards defensive sectors like utilities or healthcare, which are historically less volatile.
Takeaways
Understanding the distinctions between market corrections and bear markets is essential for investors navigating the complexities of financial markets. By recognizing the characteristics of each and implementing sound strategies, investors can position themselves for long-term financial success amidst short-term storms.
Our technology leverages self-correcting AI, evolving in real-time to market shifts. By incorporating alphaAI into your investment strategy, you gain insights into market nuances and equip your portfolio with the downturn protection needed to thrive in corrections and bear markets alike. Learn more about us on our site.
Welcome to our Friday Finance Fix Newsletter, where we bring you the latest updates on key financial developments shaping the economy and markets.
Google Releases Gemini and Boosts Market
In the realm of artificial intelligence, Google's parent company, Alphabet, has thrown its hat into the ring with the release of Gemini. This new AI model, set to officially launch on December 13, 2023, is positioned to rival OpenAI's ChatGPT. The impact of Gemini on the stock market has been significant, triggering a positive turn for both the Dow and the S&P 500 after a three-day slump. Sundar Pichai, Google's CEO, highlights the potential of their DeepMind AI division to revolutionize generative technology for business and daily life. Investors, however, remain cautious, drawing parallels with the challenges faced by Bard, another Google AI, in terms of accuracy, integration, and versatility.
AMD is Now Nvidia’s Significant AI Chip Rival
In the rapidly evolving landscape of AI chips, AMD has entered the fray with its MI300X AI chip, positioning itself as a significant rival to Nvidia's flagship H100. AMD's CEO, Lisa Su, projects a $400 billion AI chip market in the next four years, doubling her previous forecast. The MI300X has already garnered attention from major players like Microsoft, OpenAI (Google Gemini’s rival), and Meta as initial customers. While experts suggest that the MI300X outpaces Nvidia's chip, the competition is set to escalate further as Nvidia plans to counter with the H200 next year. The dynamics of the Chinese market and US policies add a layer of complexity to this unfolding AI chip war.
JPMorgan’s CEO Jamie Dimon and US Senators Are Against Crypto
A Senate Banking Committee hearing witnessed CEOs of major US banks, including JPMorgan’s Jamie Dimon, expressing skepticism about cryptocurrency. Dimon went as far as stating that the only 'true use case' for crypto is by and for criminals, advocating for the government to eliminate it. Surprisingly, Senator Elizabeth Warren echoed Dimon's sentiments, citing national security concerns. This alignment between financial leaders and lawmakers could signal a shift in the future landscape of cryptocurrency regulation in the United States.
Ukraine Might Be Cut Off by the Senate
Senate negotiations on foreign aid, including crucial support for Ukraine, are at a standstill due to Republican demands for changes to border and immigration policy. The deadlock raises concerns about aid delivery and risks cutting off Ukraine from essential weapons, as stated by President Biden. Tensions have escalated, leading to a classified briefing marked by a heated exchange. With the holiday recess approaching, senators express a willingness to prolong discussions. The situation not only jeopardizes Ukraine's security but also highlights the challenges of bipartisan consensus on critical foreign aid.
Who’s tired of drug prices? Everyone!
A collective push to lower high drug prices is gaining momentum among lawmakers, insurers, and employers. Inflation has impacted Americans' ability to afford prescription drugs, prompting insurance companies to advocate for systemic reforms. Employers, who pay an average of $14.6K per employee in healthcare premiums, are seeking alternatives to curb rising medical costs. As the landscape of drug manufacturing undergoes transformation, companies are negotiating better deals, with some opting for more cost-effective alternatives. This shift in the pharmaceutical landscape aims to make medications more affordable and consumer-friendly.
What about alphaAI?
In any investment endeavor, the key to success lies in making informed decisions. Whether you're building a recession-resistant portfolio, diversifying your assets, or simply exploring new opportunities, your journey should be guided by knowledge and insight. At alphaAI, we are dedicated to helping you invest intelligently with AI-powered strategies. Our roboadvisor adapts to market shifts, offering dynamic wealth management tailored to your risk level and portfolio preferences. We're your trusted partner in the complex world of finance, working with you to make smarter investments and pursue your financial goals with confidence. Your journey to financial success begins here, with alphaAI by your side.
Frequently Asked Questions
Find answers to common questions about alphaAI.
How does alphaAI use AI?
We use AI to automate the entire investment process, from beginning to end.
At the heart of our proprietary, industry-leading AI system is a set of predictive machine learning models. Our models have been trained on multiple decades of data encompassing more than 10,000 global stocks. On average, each model is trained on more than 10 billion data points. Each model is trained to perform a unique predictive capability, and multiple models work together to make trading decisions.
Our portfolio management system uses a rules-based approach to decide what to do with the predictions that our models generate. This includes making trades and managing risk according to your unique investor profile. This system also includes numerous failsafe protocols to ensure that all actions taken are within strictly defined parameters.
Read more about our technology.
Is it safe to let AI handle my money?
Yes, absolutely! There is a 0% chance that our AI technology will take unexpected actions – let us explain why.
At its core, AI is simply machine learning (ML). ML is a branch of mathematics focused on the development of models that can learn patterns from data.
We use a variety of predictive machine learning models combined with a rules-based approach to make trades and manage risk according to your unique investor profile. Our systems include numerous failsafe protocols to ensure that all actions taken are within strictly defined parameters.
Hopefully, you now have a better understanding of what AI is and how we use it. So don't worry – AI doesn’t have sentience, and there is no chance of it going off and making its own decisions. AI is another word for machine learning, and machine learning simply consists of a collection of predictive methods and models that can learn patterns from data.
Are there any hidden fees? What’s the actual price?
At alphaAI, we don’t believe in the traditional management fee model. Why should your costs go up as your assets increase?
We charge a single, flat subscription fee. This is the only way we make money. We do not charge account opening fees, minimum account fees, withdrawal fees, or account closing fees.
At alphaAI, our mission is to make sophisticated investment strategies accessible to everyone! We pride ourselves in our affordable and transparent pricing.
What is the minimum account size?
Get started with as little as $100!
How is alphaAI different from other roboadvisors?
alphaAI is the only roboadvisor that adjusts your portfolio to the markets in real-time. Other roboadvisors use a purely passive investment approach, which leaves you unable to take advantage of market trends.
At alphaAI, we use responsive investment strategies to manage your risk. This means that when the markets are volatile or uncertain, we automatically reduce your risk to help minimize portfolio volatility.
Read more about the alphaAI difference.
What is alphaAI’s investment philosophy? How do you control risk and drawdowns?
Our goal is simple: deliver better risk-adjusted returns than the market. We do this by focusing on automated, high-upside strategies that primarily invest in leveraged ETFs, such as TQQQ and UPRO.
Our AI system adjusts your strategy to your unique investor profile and risk tolerance. We adapt your portfolio’s risk level to the markets in real-time, helping keep your portfolio’s volatility and drawdowns within your defined acceptable range. We control risk in two key ways: market exposure management and tactical asset allocation. The result: better returns for the amount of risk taken on.
Read more about our investment philosophy here.
Why does alphaAI focus on leveraged ETFs? Aren’t they highly risky?
We focus on leveraged ETFs because of their potential for significant returns. For example, TQQQ has returned an average of 41% per year since its inception. Those are the kinds of numbers that excite us, and you are the ideal client if that also excites you.
However, higher potential returns also mean higher potential losses. That is why our primary focus is on risk management. We use automated market exposure management and tactical asset allocation to ensure your portfolio’s risk matches your investor profile and risk tolerance.
For reference, the S&P 500 has an annual average volatility of 20% — think of volatility as a measure of risk. With our tech, you can specify the level of risk you’re comfortable with — whether it’s less, more, or the same as the S&P 500 — and our AI system will handle the rest.
How hands-on or off is alphaAI?
alphaAI is completely hands-off – set it and forget it!
All you have to do is set your investor profile and customize your strategies. After that, we take care of everything for you. We automatically make trades and manage your portfolio’s risk in response to market conditions. Our leading-edge AI system stays on top of the market so you don’t have to. Rest easy knowing that regardless of what the market does, we are responding in the best way for you and your financial goals.
Read more about how the alphaAI process works.
What assets can I invest in through alphaAI?
Our strategies are optimized for ETFs, including leveraged and inverse ETFs. We will be adding additional asset classes in the future.
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