Playing on Rational Irrationality of Sophistical Investors
This article was written by Sergey Okun – Senior Financial Analyst, I Know First, Ph.D. in Economics.
Summary:
- The inherent unpredictability of market behavior brings about both increased risks and profitable opportunities.
- Contrary to the prevailing theory, institutional investors often navigate a nuanced landscape, where they may be more inclined to "ride" market trends than actively oppose price inefficiencies.
- AI algorithms emerge as powerful tools, demonstrating precision in recognizing and capitalizing on complex market scenarios, unveiling asymmetries that may elude human experts and providing a comprehensive understanding of investment landscapes.