Sector Rotation Strategy And AI: Match Made In Investment Heaven? It is no secret that bigger institutional investors are not really known for high risk tolerance. After all, going all aggressive with the millions and millions of your clients’ funds is akin to putting your best suit on as you head to play soccer with your friends – it is a statement (a fashion statement, at least), but in life would your life be that better with that wonderful suit ruined? That is unlikely, and even less likely is the prospect that the investors would be happy with losing their money due to things going horribly wrong. Thus, the Big Boys Club can be reasonably expected to opt for strategies that do not come equipped with major risks, and among them is an approach that is known as Sector Rotation – and this is what we will be looking at today.



In its essence, pure and simple, the Sector Rotation strategy is based on the idea that in any given time period, some sectors in any given economy perform better than others, investment-wise, growing higher and generating better returns. The next logical step from this point, of course, is to invest in the top performers and try to avoid investing in those lagging behind. After all, money attracts more money, and Wall Street has as much love for the winners as it has spite for the losers, right?

Read more. Are Stock Markets As Unpredictable As We Think? The rise of machine learning and the omnipresent AIs poses quite a variety of questions for humanity as it enters the era when everything around has the word “smart” in its name. How do we make sure that smart machines do not leave humans out of jobs and, thus, means to sustain themselves? How do we maintain people’s privacy in a time when data, the AI fuel, is such a major business enabler? Will we ever get to the point where advanced mathematics can approximate the human cognition, with all of its virtues and drawbacks, and how do we remain human in the age of singularity?



These are all good and valid questions to mull over, but there are also dozens and dozens of more pragmatic things to consider. One of them is the way the AI technology is transforming the financial sector, and here, one of the most difficult, yet most alluring challenges for machine learning is this: can AIs predict the stock market with the efficiency that leaves the conventional investment strategies behind? Can AIs beat the stock market?

Read more. Bitcoin Price Forecast: Waltzing With Volatility For investors, Bitcoin, as well as the other cryptocurrencies, is a mix of positives and negatives. On the one hand, cryptocurrencies have a bunch of flaws that can drag them down – and that do drag them down, for that matter. First of all, most of them are inherently volatile by the virtue of being a fiat currency with no government to back it up. While that may not necessarily sound too scary at its face value, but consider this. Crypto-currency is in most cases stored in online (quite appropriately called) crypto-wallets offered by various services and traded on crypto-exchanges. Both can be hacked into, despite all the rigorous cybersecurity measures put in place to keep the bad guys out, and every new hack makes the prices stumble.



On the other hand, however, Bitcoin is a more or less new sphere to explore, and the ever-growing number of cryptocurrencies, each with their own features, leaves ample space for venture investors to step in, while their dangers outlined are nothing new at this point. Bitcoin has been able to surge beyond belief, and despite the losses, it is currently still high up if compared to its initial value. Can another cryptocurrency replicate its success? Are they really the future of finance, as some pundits and cyberpunks keep telling us? They may be, they may be not, but they still have enough of a pull for people to ask these questions – and invest.

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Gold Price Forecast: Tough Times, Golden Opportunities



In terms of investment, gold is relatively noteworthy – as the engine for diversification for pretty much any portfolio. Conventional wisdom advises to keep up to 10% of the funds invested in gold, but no more than that. The reason for that is that while gold does not promise the same staggering returns as stocks do, it does allow one to offset inflation, as it tends to slowly gain value against the dollar over time. It also works as a good hedge against sudden swings in the strength of the mighty dollar, as it demonstrates a negative correlation with the dynamics of its index. In other words, gold tends to go up when the USDX goes down, and vice versa.



Right now, we can see gold rising on the back of report a new report on the current state of the US labor market, which saw fewer than expected jobs added in May, and the wages lagging behind their expected growth. These signals cast some shade on the current state of the US economy, triggering investors’ fears of a waning momentum and expectations of an interest rate cut by the US Federal Reserve. This dragged the greenbacks’s strength vis-à-vis other major currencies down, which, in line with the trend we have noticed before, has allowed gold to rally to the highest level since April 2018.

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Performance Evaluation Report For Currencies Universe



In this Forecast Evaluation Report, we will examine the performance of the forecasts generated by the I Know First AI Algorithm for the Forex market. Our analysis covers time period from March 28, 2019 to May 19, 2019. We will start with an introduction to our asset picking and benchmarking methods, and then apply it to the currency pairs universe as covered by the I Know First’s “Currencies” package. We will then compare returns based on our algorithm with the benchmark performance over the same period.

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