What Baselines Should You Judge Your Investment Portfolios Against?

trading

Have you ever decided to climb somewhere really high, like a mountain, put on a blindfold, and go on a nice, enjoyable hike, completely blind? No? 

Well, of course not, because that would be stupid. You’d essentially be asking to trip over a rock and plummet out of sight. If you’re going anywhere with great heights but significant drops, you’ll always need your wits about you and a definitive ability to observe where those drops might be and how you can avoid them.

So why do so few people take this thought process into investment?

Navigating The Stock Market

According to recent data, over 55% of adults in the US are actively invested in the stock market. Mash that with 40% people in the UK, 35% in Japan, and 30% in Canada – and this is without mentioning all the other countries, like China and India – and $95 trillion circling the market in question, and you’ve got an awful lot of people wandering around a pretty steep precipice. 

The stock market is becoming exceedingly difficult to navigate, and yet there are so many investors who are not equipped with the right tools – or people – to clearly observe what is happening and how to make gains from it. 

You might be thinking: well, no one has the ability to see all and know all. And that’s true, but knowing everything isn’t what it takes to be successful in the stock market. Actually, it just takes one simple thing. A baseline.

Using Baselines For Your Investment Portfolio

Several investors jump into the stock market without a clear baseline to reference when measuring their portfolio’s progress. The ones who do have a baseline, similarly, are not assured reliability. 

Most of the time, middlemen who assist and manage an investor’s portfolio will judge performance based on previous years, real-time market analysis, and the factoring of outside influence, including inflation, the role of inflation, and transaction fees. 

Doable, for sure, but not necessarily reliable when you consider every piece of data that a single entity would need to formulate a structured decision. That’s why FINQ’s portfolios have been seeing such success over the last few years. Powered by STOCKS-AI, investors are currently being equipped with curated insights, offering understanding and clarity through vast data sets. 

This gives them the information that they need to not only measure a portfolio’s performance but also make informed, effective decisions in the most important phase the investor has: real-time.

Measuring Data With AI Tech

It might sound a little simple: if you want to measure a portfolio alongside vast amounts of data sets effectively, you’re going to need the appropriate tech that can measure that data. And yet, in the world of investment, this sort of technology is wholly new. The biggest thing about AI-based financial tech, however, is that it not only collects and structures data, but transforms it into insights.

In order to be successful – and avoid those steep drops that we talked about earlier – every investor is going to need an AI engine that can provide such transparency, allowing them to think clearly about a portfolio, and acknowledge what needs to change and what can stay the same. Eradicating guesswork. That’s the future of investment.