Good old "bottom-up" stock-picking may feel unrewarding right now, but it also creates opportunities to hang on to holdings with solid investment thesis and attractive fundamentals, as these will reassert themselves as soon as markets stop oscillating between opposing "top-down" views about where the world economy is headed.
While the article could have just as well been describing Butterwire’s journey since the global financial crisis, its conclusion does trivialise the issue of Augmented Intelligence as a man vs. machine stand-off and misses the bigger picture aptly captured in two recent McKinsey reports.
Over confidence, over trading, and over reaction to market noise, are unrelenting enemies of successful, long term active investing. Butterwire resolves these by encouraging an unwavering focus on what matters for long term wealth, helping investors find opportunities with less effort, take risk without speculating, stay ahead without over trading, and get an edge without overpaying.
RobinHood, Dabbl, Revolut the rise of (near) free trading... and uninformed investing?
Just as financial markets seem to price in ever lower global growth expectations, we are entering the seasonally less liquid and more volatile month of August with the prospect of 0% global equity returns over the next 12 month... This is bad news for both index trackers (who cannot choose) and for mutual funds (whose mandate is typically to remain fully invested at all time and whose large size typically prevent them from being truly active anyway).
But investors who manage their own portfolio of individual holdings have full flexibility, including that of using butterwire's Stock Explorer function to look for investment candidates with the potential to fare better than most should financial markets jitters escalate.