JPMorgan tests an AI investment agent that can autonomously adjust stock and bond allocations

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Mars Finance news: On July 11, JPMorgan Chase is testing an AI agent that can autonomously adjust the allocation between stock and bond investments, dynamically rebalancing the portfolio based on changes in market conditions. The test results show that in a 20-year historical backtest, the AI model with the best performance delivered an annualized return that was 0.7 percentage points higher than the traditional “60/40” stock-bond portfolio, while also maintaining 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 are not actual investment performance. The firm also warned that large-scale AI adoption could lead to convergence of trading strategies, increase crowded trades in the market, and amplify market volatility under stressed conditions.
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