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Using Technology to Improve Investment Performance
August 9, 2018 - Christian Ravsten
Technology astounds me by what it can do and how it can transform lives. I have talked with farmers in Idaho who have GPS on their massive tractors so the lines of seeds they lay down are as straight as possible. Talking with clients that have Tesla electric cars and the unbelievable things the Model S can do is all thanks to technology. Our phones can guide us to faraway destinations, help us pick out new restaurants and even recommend new songs we should hear. I am grateful for technology and recognize its massive potential to improve our lives.
With the massive change occurring in almost every industry because of technology, why are investors still ‘settling’ for the old way of investing. Why do they put up with an asset allocation strategy that has either flat or downward trending investments? For example, why be invested in bonds during a period of rising interest rates by the Federal Reserve? Bonds move inversely to interest rates, so if rates are going up, typically intermediate to long term bonds are decreasing in value. On the other hand, if emerging markets are showing signs of growth like they did in 2017 as one of the top performing asset classes, why not allocate more money into those investments? And what is your strategy for allocating to cash when there isn’t an opportunity for productivity and growth in the market? Can your investment strategy optimally allocate to cash for safety?
If technology has the ability to reshape and make more efficient every other industry, shouldn’t it be used to make more informed and efficient buy and sell recommendations for an investment portfolio? Why rely on old asset allocation formulas that are stuck in history while the market is ever changing? Think about this for a minute. The Modern Portfolio Theory was created in 1952 and has helped shape the way people invested by reducing risk through a diversified mix of investments. With the lack of technology at the time, it was the most consistent way to invest. In the early 1950’s, when the first computer language was developed, we started to see technology come alive. Since that decade, think about how far computers and technology have come and compare it to your investing process or the one used by your financial advisor. Has it evolved at all?
At Foxstone Financial, we leverage cutting edge investment technology that includes artificial intelligence to make buy and sell recommendations for our clients' portfolios with a tremendous rate of accuracy. This unique technology runs six million iterations every night to find productivity and safety. Optimizing our clients’ investment portfolios using this advanced technology is the name of the game. The market changes at a rapid pace and many of the changes are driven by emotion and assumptions. Shouldn’t your investment portfolio have a dedicated technological strategy to ensure a high degree of accuracy and reduced risk by eliminating emotion, ego and fear?
Let Foxstone Financial show you how we can use advanced investment technology and artifical intelligence to transform the management of your investments.
About Foxstone Financial
Foxstone Financial is a Denver-based investment advisor that uses the latest artificial intelligence investment technology, decades of market experince and a network of specialized partners to serve clients that expect better than average.