Will the use of AI by investors “compres the spring" of the market cycle and improve broad market fund returns?
What got me into broad market funds is if you zoom out on the total market, you’ll see it’s a series of peaks, lows, and valleys that trends upward over time.
Now, with everyone from Wall Street down to individuals at home using AI to help them price the market, do you think this will speed up the rate of market crashes and rallies? In my mind, I see new technologies “compressing the spring,” so to say, which causes the market to accelerate in its long-term trajectory. Thus, people who hold broad market funds might see higher annual returns.
People betting on certain stocks will still get varying results, but people who heavily diversify might benefit from the market moving faster.
This is all speculative so I’d love to hear other peoples’ 2 cents.