My ‘Greed-Oriented’ Algorithm is Telling Me to Buy Stocks

Vasant Dhar

By Vasant Dhar

By Vasant Dhar

As the stock market responds to the coronavirus pandemic, should you buy U.S. stocks now or wait?

I created a machine-learning-based hedge fund that has managed institutional capital systematically for over 10 years. One of my “greed oriented” algorithms sees the plunge in the equity market SPX, 2.392% as a good time to buy, even as humans are gripped by fear. I agree, and suggest you consider taking its advice with a long view.

Algorithms offer useful, unemotional information during times of panic. While exact market bottoms are difficult to predict, the market will recover. The question is when, and how do I leverage the current opportunity to potentially see large returns when it does?

Read the full MarketWatch article.

Vasant Dhar is a Professor of Information Systems.