In 2023, FINQFIRST returned 57.66% compared to the S&P 500’s 24.23%, which is 2.38X higher.
Showcase how FINQFIRST outperformed the S&P over 2023
FINQFIRST performed impressively last year, easily beating the benchmark S&P 500.
In 2023, FINQFIRST returned 57.66% compared to the S&P 500’s 24.23%, which is 2.38X higher.
To do this, FINQ leverages advanced AI to analyze a wide array of data, categorized into Crowd Wisdom, Professional Wisdom, and Company Fundamentals. This approach combines insights from media, financial institutions, and company reports in a comprehensive data warehouse. The result is a sophisticated platform for investment insights, akin to platforms like ChatGPT, streamlining strategic decisions for stock transactions.
Let’s review some examples to see how FINQFIRST achieved this alpha.
Meta Platforms Inc. - META
Early in 2023, on February 8, FINQFIRST purchased Meta. Roughly five months later, on July 11, the position was sold.
Over that period, the stock returned 62.62%, over eight times the rate of return of the S&P 500 at 7.8%.
The initial buy was triggered after the Professional Wisdom parameters in FINQFIRST’s algorithm increased. The position was only sold after the parameters decreased.
Palo Alto Networks, Inc. - PANW
On June 21, FINQFIRST bought Palo Alto Networks before selling it on October 11.
Over that time, the shares returned 8.49%, compared to just 0.25% for the S&P 500.
This time, the buy was triggered by a rise in Professional Wisdom. Once the parameter lowered sufficiently, a sell was initiated.
In 2023, FINQLAST's 4.54% return exceeded the S&P 500 Short benchmark by over 119%.
Showcase how FINQLAST outperformed the S&P over 2023
In 2023, FINQLAST returned 4.54% compared to the S&P 500 Short benchmark of -24.23%. In other words, the FINQLAST portfolio returned 119% more than the index last year.
Employing a data approach similar to FINQFIRST, FINQLAST utilizes advanced AI to meticulously analyze a vast range of data, neatly classified into three key areas: Crowd Wisdom, Professional Wisdom, and Company Fundamentals.
Of course, compared to FINQFIRST, FINQLAST alpha was generated off underperforming names.
Davita Inc. - DVA
On August 25, 2023, DVA was added to the FINQLAST portfolio in response to a shift in sentiment among the Professional Wisdom group criteria.
The position was unwound roughly two months later on October 17, triggered by a change in the Fundamental group criteria.
Over that time, DVA’s stock price dropped just over 24%, while the market fell roughly 0.7%.
Had you followed FINQLAST’s insights and sold DVA short on August 25 before closing the position on October 17, you would have outperformed the market by over 23%.
Following FINQLAST's insights to short DVA from Aug 25 to Oct 17 would have beaten the market by over 23%.
Whirlpool Corp. - WHR
On July 27, 2023, WHR was added to the FINQLAST portfolio due to a change in the Crowd Wisdom group criteria.
On November 22, the position was closed, again because of a shift in Crowd Wisdom group criteria.
During that period, WHR fell 23.2%, compared to the market’s 0.4% return.
Following FINQLAST’s insight to short WHR on July 27 and closing the position on November 22 would have resulted in market outperformance of 22.8%.
Shorting WHR from July 27 to Nov 22 as per FINQLAST would have led to a 22.8% market outperformance.
Holding vs selling stocks
Man versus machine
The dichotomy between science-driven investment strategies and human intuition in finance represents a fascinating tug-of-war between traditional decision-making and modern technology.
In other words, man versus machine.
Science-driven investment strategies
- Data-driven decision-making: This approach heavily relies on data analysis, algorithms, and statistical models to make investment decisions. It's grounded in the belief that historical data, market trends, and quantitative analysis can predict future market behaviors.
- Machine learning and AI: Advanced technologies like AI and machine learning can process vast amounts of data far beyond human capability, identifying patterns and insights that might be imperceptible to humans.
- Risk management: Scientific approaches often include sophisticated risk assessment tools that quantify and manage risks more accurately.
- Emotionless and consistent: These strategies remove the emotional bias from investment decisions, aiming for consistency and rationality.
Human intuition
- Experience and judgment: Human intuition is often rooted in personal experience and judgment. Investors might rely on their gut feeling or instinct, which is shaped by years of experience in the market.
- Understanding of human behavior: Human investors can consider psychological, social, and cultural factors that might influence market movements, which are often challenging to quantify in data models.
- Emotional intelligence: Emotional intelligence allows human investors to read the market sentiment, which can be crucial in decision-making, especially in volatile markets.
FINQEDGE portfolio returned $1,465 more than the S&P 500 on a $10,000 investment over 12 months.
FINQEDGE
With FINQEDGE, users can access the combined assessment of FINQFIRST and FINQLAST. That is, FINQEDGE delivers a simple list of the best-buying and best-selling stocks.
So, how did FINQEDGE perform last year?
FINQEDGE returned 38.88% in 2023. Again, this represents significant outperformance compared to the S&P 500’s 24.23% return.
Let’s break down the numbers. Fees aside, how much would you earn off an initial investment of $10,000 following the FINQEDGE portfolio compared to investing in the broad S&P 500?
If you invested in the broad S&P 500 at the end of 2023, you’d be left with $12,423 ($10,000 x 24.23). This means you profited $2,423.
Not bad!
But, If you invested $10,000 in FINQEDGE instead, you’d be left with a portfolio worth $13,888 at the end of the year. This represents an impressive $3,888 profit.
Put another way, the FINQEDGE portfolio returned $1,465 more than the S&P 500 on a $10,000 investment over 12 months.
The numbers speak for themselves.
Conclusion
As we reflect on the remarkable journey of the financial markets in 2023, it becomes increasingly evident that a data-driven approach to investment is not just valuable, but essential in navigating the complex and dynamic landscape of modern finance. The FINQ end-of-year report for 2023 vividly illustrates this point.
The year 2023 was a testament to the resilience and potential of the markets, marked by impressive gains in major indexes like the S&P 500, despite the challenges posed by high interest rates, persistent inflation, and geopolitical tensions. The standout performance of sectors like information technology, fueled by advancements in artificial intelligence, underscores the rapid evolution and opportunities within the market.
This is where FINQ's services shine. By leveraging data-driven strategies, including the innovative FINQFIRST and FINQLAST portfolios, FINQ has successfully navigated these turbulent waters, significantly outperforming the market. The remarkable returns achieved by FINQ's strategies are a powerful endorsement of the efficacy and value of a data-driven approach.
The insights from 2023's market performance unequivocally support adopting data-driven investment strategies. As we move forward, the wisdom gleaned from this year's experiences strongly encourages investors to embrace the services offered by FINQ. Utilizing FINQ's expertise and data-centric approach can empower investors to make more informed, strategic, and ultimately, successful investment decisions in the ever-evolving financial landscape.
