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EXCLUSIVE: Survey Suggests Investors Losing Touch With Market, Trust Algorithmic Alternatives

A new survey commissioned by Kaiju Capital Management, finds that 78% of respondents trust algorithmic stock trading more than human traders. The anonymous 1,000-person survey also suggests confidence rises to 96% if the algorithm has a six-year track reco...

Benzinga · 04/29/2022 07:05

A new survey commissioned by Kaiju Capital Management, finds that 78% of respondents trust algorithmic stock trading more than human traders.

The anonymous 1,000-person survey also suggests confidence rises to 96% if the algorithm has a six-year track record.

Context: This is in light of a bear market on the heels of changing macro environment.

The Federal Reserve’s intent to engage in contractionary monetary policy, coupled with economic slowing and geopolitical uncertainties, has coincided with volatility and investor losses.

According to the survey, 93% of respondents manage their own investments using popular trading apps and two-thirds of investors believe the learning curve is too overwhelming.

“Making sense of investing can feel like drinking from a firehose,” said Ryan Pannell, Founder and Chief Investment Officer of Kaiju Capital Management.

Conclusion: 89% of respondents would trust an algorithm trading for them, so long as it has a successful track record and is monitored by an experienced hedge fund team.

“AI is a game-changer for investors because it crunches massive data sets instantly to identify opportunities that no individual manager could predict,” Pannell adds.

For more on this survey and Kaiju Capital Management, click here.