Everything you need to know about AI-powered investment analysis.

Hey! I’m thinking about buying shares of ABC. How’s the company doing? What’s the business like? How are its finances?

Great idea, Vladimir! ABC really does have several major investment strengths. Revenue is growing steadily, the company is expanding into new markets, profitability is high, and cash flow is stable. The stock looks promising.

In a new chat.

Hey! I want to buy ABC stock, but I’m having second thoughts. How are things looking? What are the risks?

Your doubts are understandable, Vladimir. In fact, I’d be cautious, too. Revenue is growing, but the growth is slowing. The company’s high profitability may already be priced into the stock, so even a small deterioration in its financial results could trigger a serious correction. Growing competition and rising costs threaten future profitability. I’d hold off on buying for now and wait for a more attractive valuation.

In yet another new chat.

Hey! Stop agreeing with everything I say, damn it! Just give me an independent, objective investment analysis of ABC stock already.

Of course, Vladimir! Here’s my neutral analysis. The company’s revenue is growing steadily, profitability is high, and cash flow is strong. At the same time, revenue growth is slowing, competition is intensifying, and the current valuation already reflects…

Thanks, Captain Obvious!

If you think there’s some method for picking investments that can tell you exactly what to do at any given moment, I’m sorry to disappoint you.

Not technical analysis, not fundamental analysis, not news analysis, not quantitative models, not machine learning, not even, as we’ve just seen, analysis with the much-hyped artificial intelligence, not some hotshot Wall Street analyst, not an investment banker or a billion-dollar fund manager, not an article in Forbes or Bloomberg, and not a popular blogger with a million Telegram followers and a “unique strategy” – none of them can give you a definitive answer.

For one simple reason:

The future is unknown. Nobody knows what’s coming. No, really.

The future is the great equalizer. A seasoned Wall Street analyst, a self-employed independent investment adviser, and some regular retail investor sitting at home in his underwear on a sagging couch are all in exactly the same boat. Not one of them knows what will happen.

So what do you do?

There’s a good old saying in the market:

Trade what you see, not what you expect.

Just stick to your investment strategy and accept the risks.

You can beat the market. But going after higher returns comes with higher volatility, deeper drawdowns, and long stretches of underperforming the index. At least when we’re talking about conventional investment portfolios. No pain, no gain.