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

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July 12 news: JPMorgan Chase is testing an AI agent that can autonomously adjust the stock and bond investment mix to dynamically rebalance portfolios according to changes in market conditions. Test results show that in a 20-year historical backtest, the AI model with the best performance delivered an annualized return 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 cause trading strategies to converge, increase crowded market activity, and amplify market volatility under stress conditions.
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