JPMorgan tests AI investment agents that can independently adjust stock and bond allocations

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BlockBeats, July 11: JPMorgan is testing an AI agent that can autonomously adjust the stock and bond investment mix, dynamically rebalancing the portfolio based on changes in market conditions.

The test results show that in a 20-year historical backtest, the best-performing AI model’s annualized return was 0.7 percentage points higher than the traditional “60/40” stock-bond portfolio, while also having lower volatility. All eight AI agents tested by JPMorgan achieved higher risk-adjusted returns.

However, JPMorgan said the results are still based on simulated tests and not actual investment performance. The firm also warned that large-scale AI adoption may lead to convergence of trading strategies, increasing crowded trading in the market, and amplifying market volatility under stress conditions.

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