AI-Based Stock Picker Outperformed S&P 500 By Nearly 50%
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Artificial Intelligence (AI) is faster and more accurate than humans, which is nothing new. In fact, this is why it has been introduced to areas where high-speed and equally high accuracy are essential, such as investing. However, now the results are showing just how much better AI tends to be at things like picking best-performing stocks.
ProPicks Outperforms S&P 500
Last year, a new AI-based trading solution called ProPicks was introduced to the subscribers of investing.com, and it was set to be used for picking the best-performing stocks with the goal of boosting the investors’ gains.
Now, the results show that the AI stock picker managed to outperform the S&P 500 by almost 50%.
S&P 500, or Standard and Poor’s 500, is a stock market index tracking the stock performance of 500 of the largest companies listed on stock exchanges in the US. It is also one of the most commonly followed equity indices and it includes around 80% of the total market capitalization of US public companies.
In other words, this is the go-to index for investors who seek steady and low-risk gains, and it is closely monitored by some of the best experts in finance.
Meanwhile, InvestingPro’s retail traders got to use ProPicks during the past year rather than the human experts, and the AI tool outperformed the S&P500 by +46.24%. It delivered around +84.62% gains to the platform’s users, while the S&P 500 itself only brought +38.39 gains to its own investors.
Stock-Picking With AI Is About To Evolve Into A Completely Different Game
Commenting on the situation, Investing.com’s VP of subscription products, Andy Pai, said that stock picking is changing, and it has grown to be increasingly more difficult. However, that doesn’t mean that retail investors should be at a disadvantage in comparison to institutional investors who are already using AI to achieve market success.
Now that ProPicks has outperformed the S&P 500 by nearly 50% over the course of a year, the value of the AI-based stock picker is clear, and it is more than just a game-changer, according to Pai. Instead, it is a completely different game.
ProPicks is allowing its Premium subscribers to use AI models trained on over 100 financial metrics. Furthermore, its models are powered by Google Vertex AI and are capable of sifting through vast company datasets to pinpoint stocks that are most likely to outperform major indices. Based on the results seen in the last 12 months, AI has definitely proven its worth and is likely to become a common part of similar platforms moving forward.
