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- How AI will change retailer investing forever.
How AI will change retailer investing forever.
Plus is fractional ownership the future?
Cashflow Chronicles
July 07, 2023
Hey, savvy entrepreneurs! A huge welcome to our 763 new subscribers…excited to have you with us.
In this week’s Cashflow Chronicles, we’ll explore how AI will change retailer investing forever.
Are You Ready For The Revolution?
In the world of investing, AI is like the gold rush, it's stirring up excitement, promising new riches, but also posing new challenges.
We’re not talking about a minor shift here…we're on the brink of a revolution in retail stocks and shares investment. In under 4 minutes, you’ll learn:
The profound impact of the Internet so far on investment strategies. 💾
The rise of Big Data, AI algorithms, and research bots and their impact on investing. Game-changer or dangerous? 🟢🔴
The role of blockchain technology in investing beyond just crypto. 🔐
Let's dive into the deep end…
(Disclaimer: The content provided in this newsletter is for informational, educational, and for entertainment purposes only. It should not be construed as financial or investment advice.)
Investing in the Internet Era
Revolution on the Trading Floor: How the Internet Transformed Investing and Set the Stage for an AI Takeover
Picture this…
It's the early 90s and you want to invest in a hot new stock called Dell Computer…
So you pick up your corded home telephone receiver and call Steve, who is your stockbroker at Merill Lynch: "Hey Steve, I want to buy 100 shares of Dell at a stop-limit price."
If you already have money deposited in your brokerage account, you're in luck, as the trade can be placed immediately (minus a $50 commission, of course).
If not, you must mail out a check OR drive to your bank, do a wire transfer, and wait a few days for your buy order to be completed.
If you never had to go through this tedious process, thank Tim Berners-Lee who invented the Internet.
But if you did, these market stars would have made you a fortune.
Fast forward to today and…as individual investors (retail investors), every publicly-listed stock in the world is generally available to us.
We can place a trade for zero commission with a few clicks or taps.
This begs the question…
Given that the pace of AI technological development is now faster than ever before…
What does the future of investing and AI look like for the next generation?
Big Data and Mind-blowing uses of AI
Machines in the Markets: The Ascendancy of Big Data, AI Algorithms, and Trading Bots in Shaping the Future of Investing
Admittedly, most of this is pure conjecture as technology is changing so rapidly that even the next five to ten years are largely unknown.
However, we do have a decent idea of what is coming next.
Big Data could be the foundation of the future.
Artificial intelligence, automation, and personalization, none of these is possible without "big data."
It is also what will make real-time reporting possible.
Gone will be the days of waiting with anticipation for a quarter of the year to receive a company's latest financial report.
Automated accounting will be able to make and report snapshots of a company's financials in real time, like its income statement and balance sheet.
This will enable investors to make better, more informed decisions and even eliminate the financial cycle. Sounds like a win to me!
Personal Investing Bots
Algorithmic trading accounts for about 60-75% of the overall trading volume on most major stock exchanges today.
Big institutions like the vampire squid Goldman Sachs and other "too big to fail" banks are way ahead of the game in this regard. They employ more programmers than they do traders.
Soon, many retail investors buying and selling activities will be handled by software applications or "bots."
Simply select your bot, an investing strategy, and a few hard and fast rules, and the computer program does the rest. In theory, you can sit back and sip on your Piña colada on the beach.
This is already happening with crypto assets, and it's only a matter of time before it extends to stocks and commodities.
Fractional Ownership, is it the future?
Blockchain's Impact Extends Beyond Bitcoin to Revolutionize Investing
One technology will be bigger than all the ones mentioned - Blockchain.
Also known as Distributed Ledger technology…
Many people associate blockchain with Bitcoin, but it is simply the method Bitcoin uses - they don't own the tech.
It is making other exclusively physical assets like art and other collectables globally scalable.
For example, let's say you're really into impressionist artwork and decide to purchase a small fractional share in a multi-million dollar Claude Monet painting.
You could do this through an online platform, much like you would buy a share of a company's stock through your brokerage account.
Without human interaction, your fractional ownership stake is recorded on a secure blockchain network. Creating an unalterable record that isn't prone to hacking. Industries like real estate have already started doing this.
As you can already tell, the blockchain is versatile. It has many use cases, which makes it a promising growth investment in its own right.
Big data, personal investing bots, and the blockchain are just a few technologies that are certain to be the future of investing and finance.
Like any gold rush, AI investing has its fair share of risks. AI trading algorithms, despite their revolutionary impact, have their pitfalls.
Cybersecurity risks, a lack of transparency, and even moral and ethical concerns. Will AI foster an unfair advantage for confident investors? Could it destabilize the market?
Remember, you are always in charge of your money.
As we chart this exciting new territory of AI in retail investing, it's clear that the investing landscape will never be the same again. It's more thrilling, dynamic, and potentially rewarding than ever.
However, it begs the question - are we prepared to handle it?
Let us know how you think technology will change the way we invest.
The Cashflow Chronicles Team
AI Update of the Week
Welcome to our new feature. Every week, we'll share a piece of AI news or tip to help you be more productive as an entrepreneur.
This week we've got a second opinion on today's topic from Cointelegraph:
The article explores AI's effects on the retail finance sector and whether it can be used.
Video of the Week
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