Mi50 ended the week at 43.1% (vs 40.13% last week). The Nifty and CNX500 closed at 8.5% (6.5%) and 12% (9.8%) respectively. Mi50 outperformed both the benchmarks for the week.
The two adds this week are both Speciality Chemicals Companies. There were no exits.
The cash is fully deployed now ( 0.4% remains) . We have 46 stocks in all.
The drawdown has reduced to 4.6% vs 6.59% last week. We are moving fast towards the party.
The Profit distribution chart for current stocks:
All seems to be steady and well for now. All eyes now on the run up to the budget and the hopeful dry up of the FII sales.
On a totally different note, there is increasingly a huge influx of Artificial intelligence based algorithms in trading as well. Historically, over hundreds of years, human emotion has driven the markets and trends. Will this change in the decades to come? I would like you to hear your comments and insights on the same.
Have a great weekend!
AI is also slave to the human intelligence. Now if a system starts incurring drawdowns, human behind it or investors behind it start showing their human colors (emotions) and v move back to square one. Invariably they throw in the towel at exact point where it wud HV start working.
I thought machine learning was to overcome that part only….machines will get smarter on their own….?
I love your optimism :-). My system continues to suggest nifty headed down to 7900 over next few weeks. I own 1 Speciality/Agrochem Exports stock – 25% of my portfolio. Undoubtedly, Chemical is new IT for India.
Some friends in US/India are working on AI based Investment models. Generally, I can see AI will eventually beat all active fund managers in terms of performance simply because they will constantly learn from past plus Model will be NOT be impacted by media noise 🙂 but at the same time I think some handful of human brains in investing world are so powerful even multiple models working together can NOT match them. These human brains will continue to rule.