Consumers overwhelmingly trust computer algorithms over humans to trade stocks
While 93% of respondents manage their own investments, using apps like Robinhood and Stockpile to invest in individual stocks and mutual funds, 2 in 3 respondents said they thought the learning curve for investing was overwhelming.
“Making sense of investing can feel like drinking from a fire hose,” said Ryan Panel, Founder and Chief Investment Officer of Kaiju Capital Management. “AI is a game-changer for investors because it instantly analyzes massive data sets to identify opportunities that no individual manager could predict.”
The biggest concern among respondents is that 69% were unsure if an algorithm could accurately predict human trading behavior. However, 89% of respondents agreed that they would be comfortable with a computer algorithm trading for them if it performed well and was also monitored by an experienced hedge fund management team.
Other survey results:
- Among the most popular investing apps, 19% of respondents use Robinhood, 16% use Stockpile, and 19% use personal accounts (401KIRA, Roth, etc.)
- 83% said they were “familiar” or “knowledgeable” about investing
- 38% are familiar with ETFs, while 50% are familiar with cryptocurrency
- 55% have negative feelings about hedge funds
- 92% were pleased that average investors apparently outwitted some traditional Wall Street players in the GameStop stock situation
The survey of 1,000 anonymous American consumers over the age of 18 was conducted using Amazon’s Mechanical Turk, the most popular crowdsourcing survey service for scientific purposes.
About Kaiju Capital Management
Kaiju Capital Management, founded in 2013, focuses on two main areas: market-neutral, mathematically proven trading strategies and talent acquisition. Kaiju uses its Reasoning Mechanisms™ – quantitative analysis, behavioral finance, quantum mechanics and artificial intelligence – to achieve consistently high risk-adjusted investment results. For more information, visit KCM.vg.
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SOURCEKaiju Capital Management