Artificial intelligence is inching its way into our lives more and more, a newer startup is hoping you trust their AI system with your investments.
Are you more of a bear or a bull when investing your money?
Some might not know and turn to experts for help. Nowadays, those experts could fit into the palm of your hand, like the Prospero A.I. app.
“With the third year in a row, we're beating the S&P 500 by about 50%,” Prospero AI CEO George Kailas said. “So we're consistent too and yeah that was not the expectation. We were just trying to keep people out of trouble. But it's very nice to help people, you know, find new opportunities, that they wouldn't otherwise have found.”
He said it took eight years to develop the app aiming to help you in the stock market. Its goal is to use AI to turn complex trading patterns into stock insights.
“We're trying to create like an easier language that is also like very powerful, like a very easy rule,” Kailas said. “Trading is called upside and downside. So I say is the upside higher than the downside? Because if not, probably no is your answer.”
Florida Gulf Coast University business professor Thomas Matthews has researched the stock market for decades. He said this type of AI can be useful when it comes to data scraping.
“So what does that mean in English? If I get to my office early in the morning read half a dozen newspapers and try to pick out keywords that will help me to decide before I put on a trade,” he said. “Now we can use artificial intelligence to pull all of that together. Not only look at ten newspapers but look at 100 newspapers. Pull all of that together and help me to come to a better conclusion.”
But as useful as AI might be, Matthews does not think you should completely rely on it to handle your money.
“You've probably heard the old term in computing Garbage In, Garbage Out, so you have to be aware of what is going into the system and therefore kind of do a reality check or a sanity check,” Matthews said.
He said ask yourself, does this seem too good to be true? If it is, go back and check it over.
Kailas said to be aware of what types of AI tools you are using.
“I think that's kind of the danger in some of the other AI tools that I've seen where they're just like promising, like magic, and they're promising to beat the market,” he said.
Stock trading could be made easier but experts said it is never going to be easy.
If you have any money tied up in investments recently, you may have noticed the stock market closing a lot lower than usual recently with high volatility.
FGCU experts said do not be worried about your portfolio. If you see red right now we are still in positive territory.
“A lot of uncertainty in the marketplace,” Matthews said. “But if we were to take a step back, the S&P 500 is still up 9%. It was up 17%, which made everybody feel wealthy. So, we've given up about half of that gain. But we're still up 9%."