JP Morgan recently filed a trademark for IndexGPT which is a digital AI tool to help consumers select securities. In fact, JP Morgan is exploring 300 use cases for AI across its business.
Morgan Stanley is doing something similar but as an investing AI expert for its 16,000 advisors.
GPT4 is capable but these specially trained custom AI tools will fit more with business objectives and compliance requirements.
This is very intriguing! I believe that with sufficient data and the appropriate "language", it's entirely possible to develop a more specialized Asset Manager GPT.
For instance, consider feeding GPT more market-related inputs such as rates, yields, or even just telling it that the current environment closely resembles a particular time period, and see if GPT tailors its recommendations based on the input.
Possible indeed! That will speed things up to help the human managers to decipher or choose between different investment strategies. The tricky thing in investing is no market environment or crisis are alike, so it makes knowledge and experiences that much more valuable. in the age of AI.
I always think of AI as an ultimate odds optimizer. It’s like playing poker, AI will eventually be able to exhaust possible outcomes and tell you the best hands based on the available information (present and past), but ultimately human many choose to follow or pick another strategy otherwise. AI can’t “bluff”, like it can’t figure out the irrational psychology behind the market. There’s always going to be a human component to it.
Yes, as long as AI presents all the facts to us, it is the best helping hand as nothing can beat big computer's processing power. I think one really good way ChatGPT can help is in summarizing facts and writing investment reports!
ChatGPT has truly improved, and there’s a lot to learn with it. However, it’s also true that it still needs human assistance to tailor responses to each investor’s needs, based on their profile, risk tolerance, and personal goals. In this regard, I did a little research and asked ChatGPT the first two questions exactly as you had, getting somewhat different results.
Then I asked why it didn’t include small- and mid-cap companies, commodities, and inflation-linked instruments in the current interest rate environment. I got a well-reasoned answer from the tool and explanations for each adjustment.
Finally, I asked it to adjust the portfolio proposal to match a 15-year time horizon. Below is the proposed portfolio, which I assume was adapted to my location. I also think other factors and personal investor goals should be included. Interesting.
Thank you so much Marianne for this enlightening article. Learning every day!
Asset Class Example Ticker New Allocation (%) Previous Allocation (%)
U.S. Large-Cap Equities VOO (Vanguard S&P 500 ETF) 30% 20%
International Developed Equities VEA (Vanguard FTSE Developed Markets ETF) 15% 15%
JP Morgan recently filed a trademark for IndexGPT which is a digital AI tool to help consumers select securities. In fact, JP Morgan is exploring 300 use cases for AI across its business.
Morgan Stanley is doing something similar but as an investing AI expert for its 16,000 advisors.
GPT4 is capable but these specially trained custom AI tools will fit more with business objectives and compliance requirements.
Thanks for sharing these. Wall Street is paying serious attention, and I believe that will lead an AI revolution in wealth management.
This is very intriguing! I believe that with sufficient data and the appropriate "language", it's entirely possible to develop a more specialized Asset Manager GPT.
For instance, consider feeding GPT more market-related inputs such as rates, yields, or even just telling it that the current environment closely resembles a particular time period, and see if GPT tailors its recommendations based on the input.
Possible indeed! That will speed things up to help the human managers to decipher or choose between different investment strategies. The tricky thing in investing is no market environment or crisis are alike, so it makes knowledge and experiences that much more valuable. in the age of AI.
I always think of AI as an ultimate odds optimizer. It’s like playing poker, AI will eventually be able to exhaust possible outcomes and tell you the best hands based on the available information (present and past), but ultimately human many choose to follow or pick another strategy otherwise. AI can’t “bluff”, like it can’t figure out the irrational psychology behind the market. There’s always going to be a human component to it.
Yes, as long as AI presents all the facts to us, it is the best helping hand as nothing can beat big computer's processing power. I think one really good way ChatGPT can help is in summarizing facts and writing investment reports!
ChatGPT has truly improved, and there’s a lot to learn with it. However, it’s also true that it still needs human assistance to tailor responses to each investor’s needs, based on their profile, risk tolerance, and personal goals. In this regard, I did a little research and asked ChatGPT the first two questions exactly as you had, getting somewhat different results.
Then I asked why it didn’t include small- and mid-cap companies, commodities, and inflation-linked instruments in the current interest rate environment. I got a well-reasoned answer from the tool and explanations for each adjustment.
Finally, I asked it to adjust the portfolio proposal to match a 15-year time horizon. Below is the proposed portfolio, which I assume was adapted to my location. I also think other factors and personal investor goals should be included. Interesting.
Thank you so much Marianne for this enlightening article. Learning every day!
Asset Class Example Ticker New Allocation (%) Previous Allocation (%)
U.S. Large-Cap Equities VOO (Vanguard S&P 500 ETF) 30% 20%
International Developed Equities VEA (Vanguard FTSE Developed Markets ETF) 15% 15%
Emerging Market Equities VWO (Vanguard FTSE Emerging Markets ETF) 10% 5%
U.S. Investment-Grade Bonds AGG (iShares Core U.S. Aggregate Bond ETF) 20% 30%
Global Investment-Grade Bonds BNDX (Vanguard Total International Bond ETF) 5% 5%
High-Yield Bonds HYG (iShares iBoxx $ High Yield Corporate Bond ETF) 5% 5%
Inflation-Protected Bonds TIP (iShares TIPS Bond ETF) 5% 5%
Commodities GLD (SPDR Gold Trust) 3-5% 3-5%
Cash or Cash Equivalents BIL (SPDR Bloomberg 1-3 Month T-Bill ETF) 2% 5%