Who would have predicted a year ago, from the trough of the pandemic crash, that the S&P 500 would cross the milestone of 4000 on April 1, 2021? Its symbolic importance increases considerably when it is considered in the context of what a highly unusual 12 months it has been.
The recent stock market turmoil took the shine off February’s early glow and set the NASDAQ on course for its worst losing streak for twelve months. Much of this disturbance appears as a spill over of bond nerviness and the specter of inflation raising its ugly head. It is interesting, though, to see how much it is the ghost of a former era. The dip-buyers generation knows not inflation. Up until a year ago said same generation had not known a bear market. Now however, they have experienced a bear market, all be it the shortest in history and one that surely has cemented unwavering faith in dip-buying forever.
The power of narrative should never be underestimated. Humans it would appear have been story tellers and story listeners since time in memoriam. Myths have a deep role in our societies with a function in maintaining the structures of the society from which they emanate. It is important not to erroneously assume, when we look at the technological advancement that surrounds us, that our current era is too sophisticated for, or susceptible to contemporary myth.
The New Year gives us a moment to reflect on the impact of 2020. What was a grim year economically, proved to be a stellar year for some financially. Meanwhile, the uncertainty of the lockdown further validated our AI-based approach to stock-market investing.
2020 could be said to be the year of AI everything, when AI applications seem to be entering into every sphere of daily life. With investors being presented with strong evidence that AI strategies are the new alternative investment, here are our three thoughts on AI in 2021.
The new US administration is making its foreign relations preparations to assume power in January under the banner “America is Back.” The phrase contains what some non-Americans might call American Solipsism. This is fed in part by the mistaken notion that the whole world has been moving in an Americentric or more specifically a Trump-centric orbit for the last four years, simply because all US political/media debate thought it to be so. What has been most striking for the outside observer from abroad, one step removed, was the totality of it, ½ + ½ = 1, regardless of which side of the US political divide, which could be parodied as total hate or total love of the 45th president.
Artificial intelligence can be deployed to help investors navigate the post-coronavirus backdrop. Whereas popular yield-enhancing strategies, such as venture capital, often require redemption lockups and may lead to valuation surprises, advanced technology empowers portfolio managers to exploit otherwise established trading patterns in public securities, argues a new white paper by Plotinus Asset Management.
With the US presidential election now appearing to be over we are seeing much of the world’s excess media attention that the election had been vacuuming up in recent weeks, return to the theme that has dominated 2020, Covid-19. From an investor’s perspective this return to the pandemic focus means trying to continue to assess its economic/investment consequences and its various governmental mis/handlings globally.
As the US election makes its last twists and contortions toward its finale, there are clichés a plenty to describe its unique ‘never before, in a time like no other’ status. Partisans and pundits feast on every breath, tweet, or throat clearing from the White House.
We are often asked about the origins of our firm’s name. What connection could a philosopher of antiquity have with artificial intelligence decision-based trading?