The Power of the Market, the Ultimate AI

There's plenty of attention on AI and its ability to find patterns and vast amounts of data, but there's another, even smarter information processing machine one that's been around for 100s of years, the market. Every day, millions of trades take place in the market, totaling billions of dollars. The market takes in real time data about company performance, industry trends, global conditions, and much more. Insights people derive from AI get incorporated too. All this information impacts the price of the stock which changes based on what is happening now and what people think will happen. Buyers and sellers quickly respond to new information continually moving prices toward fair value. Some investors believe they can find pricing mistakes or predict where the market is going but that means competing against the collective knowledge of all those buyers and sellers. And there's no reliable evidence to show trying to out guess the market works. At Dimensional, rather than trying to find what the market got wrong, we use information and prices and expert implementation to put the power of the market, the ultimate AI, to work for investors.