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Consumers Overwhelmingly Trust Computer Algorithms Over Humans to Trade Stocks

gbafNews28

New survey shows 96% want computer algorithms and AI to trade for them

TORTOLA, British Virgin Islands, April 29, 2022 /PRNewswire/ — A new survey of more than 1,000 U.S. investors found that 78% of respondents trust algorithmic stock trading more than human traders.

That confidence rises to 96% if the computer algorithm has a six-year track record of successfully tracking human trading behaviour, according to the survey commissioned by Kaiju Capital Management.

While 93% of respondents manage their own investments, using apps like Robinhood and Stockpile to invest in individual stocks and mutual funds, 2 out of 3 respondents said they believe the learning curve for investing is overwhelming.

“Making sense of investing can feel like drinking from a firehose,” said Ryan Pannell, Founder and Chief Investment Officer of Kaiju Capital Management. “AI is a game changer for investors because it crunches massive data sets instantly to identify opportunities that no individual manager could predict.”

The largest concern among those surveyed is that 69% were unsure whether an algorithm could accurately predict human trading behaviour. However, 89% of respondents agreed they would be comfortable with a computer algorithm trading for them if it had a successful track record and also was monitored by an experienced hedge fund management team.

Other survey findings:

  • Of the most popular investment apps, 19% of those surveyed use Robinhood, 16% use Stockpile, and 19% use personal accounts (401K, IRA, Roth, etc.)
  • 83% said they were “familiar” or “knowledgeable” about investing
  • 38% are familiar with ETFs, while 50% are familiar with cryptocurrency
  • 55% have negative feelings about hedge funds
  • 92% were pleased that average investors seemingly outsmarted some traditional Wall Street players in the GameStop stock situation

The survey of 1,000 anonymous U.S. consumers over 18 years old was conducted using Amazon's Mechanical Turk, the most popular crowdsourcing survey service for scientific purposes.

About Kaiju Capital Management
Kaiju Capital Management, founded in 2013, focuses on two core areas: mathematically proven market-neutral trading strategies and talent acquisition. Kaiju operates using its Mechanisms of Reasoning™ — Quantitative Analysis, Behavioural Finance, Quantum Mechanics, and Artificial Intelligence — to achieve consistently high risk-adjusted investment results. For more information visit KCM.vg.

Follow Kaiju on LinkedIn and Twitter for more information.

All registered or unregistered trademarks are the sole property of their respective owners.

Media Contact:
Gary Bird
FortyThree, Inc.
831.621.5661
kaiju@43pr.com

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/consumers-overwhelmingly-trust-computer-algorithms-over-humans-to-trade-stocks-301536135.html

SOURCE Kaiju Capital Management

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