JPMorgan's AI agent outperformed the 60/40 portfolio in backtesting.

Jinse Finance reports that on July 10, according to Bloomberg, JPMorgan researchers have built multiple AI investment agents that dynamically adjust allocations between stocks and bonds based on market conditions. Backtesting shows that over the past two decades, the best-performing AI agent achieved an annualized return 0.7 percentage points higher than the traditional 60/40 portfolio, with lower volatility, and also outperformed JPMorgan's own rule-driven market state model.

The researchers noted that these results are historical simulations rather than actual investments, cautioning that they should not be seen as evidence that AI can consistently outperform the market, and emphasized that "agent AI must be based on a thoughtful asset allocation process, not a naive assumption that the agent itself can serve as a source of domain knowledge."