Hi Doug, another great reflection - THANKS! Based on your experimentation with Investment Alpha and others who may follow suit, where is the investment landscape heading? Can anyone harness the unfettered creativity of AI and create the extraordinary magic you mentioned? It is becoming more evident to me that as AI becomes more widespread and embedded in the investment industry, the DIY model looks to empower a far larger universe of investors than we currently have today. This will mean, I reckon, a truer version of personlisation at scale. Moreover, will we witness an accelerated pace of disintermediation in the investment management industry? As I have alluded before, what would index providers (like AMSCI) do in response to these potential changes? Fascinating times. Best, Rafael
I think anyone can harness any of the powers of AI if they are curious enough to play with it and learn how to build great things. It's like any tool, at least for now, where those who spend time learning to use can use it to make a lot of different outputs. Ultimately I think AI powered investment strategies challenge the massive flows to passive index funds and would think MSCI/S&P need to adapt to that reality. The hard thing for them is it's a shift from strict market indexing, so will they want to be active or semi-active strategy providers? They have the data...
💯 It takes strong leadership at the C-Suite of these players to effect these shifts and dare to pivot into more active strategies. The risk of disintermediation is very high, will see… I like Thematic and MerQube. Best!
Hi Doug, another great reflection - THANKS! Based on your experimentation with Investment Alpha and others who may follow suit, where is the investment landscape heading? Can anyone harness the unfettered creativity of AI and create the extraordinary magic you mentioned? It is becoming more evident to me that as AI becomes more widespread and embedded in the investment industry, the DIY model looks to empower a far larger universe of investors than we currently have today. This will mean, I reckon, a truer version of personlisation at scale. Moreover, will we witness an accelerated pace of disintermediation in the investment management industry? As I have alluded before, what would index providers (like AMSCI) do in response to these potential changes? Fascinating times. Best, Rafael
I think anyone can harness any of the powers of AI if they are curious enough to play with it and learn how to build great things. It's like any tool, at least for now, where those who spend time learning to use can use it to make a lot of different outputs. Ultimately I think AI powered investment strategies challenge the massive flows to passive index funds and would think MSCI/S&P need to adapt to that reality. The hard thing for them is it's a shift from strict market indexing, so will they want to be active or semi-active strategy providers? They have the data...
💯 It takes strong leadership at the C-Suite of these players to effect these shifts and dare to pivot into more active strategies. The risk of disintermediation is very high, will see… I like Thematic and MerQube. Best!