Money and happiness | “What do you think of AI as stock market investment?” »»

In money and happiness, our journalist Nicolas Bérubé offers his reflections every Sunday on enrichment. Similarly, His texts are sent as a newsletter the next day.

Welcome to a letter from the summer amygdale. For example, where I answer with disconcerting plumb and questionable humor to the questions you send me to finances and investment.

Let’s start with Marianne, who hesitated to take her first steps as an investigator at the age of 23.

“I have several thousand dollars who sleep,” she writes. Consequently, I always told myself that money happiness | “what do I had to save for the unexpected and sudden desires. However, if I invest, I will no longer have access to my savings. Similarly, It holds me back, because I feel like I always need liquidity, and Investing blocks my money somewhere. Meanwhile, How to decide? Consequently, »»

Very good question, Marianne. However, If you think you need money within five years for essential unforeseen events such as an orchid tattoo on the forearm. Meanwhile, a hiking trip to Costa Rica, forget the scholarship. Furthermore, The markets are too volatile in the short term. In addition, It would be a shame to sell during a decline to go. In addition, live your best life to the sound of the howlers.

To start. Consequently, you could open a brokerage account and invest half of your money in diverse financial assets in money happiness | “what do a CELI account. Consequently, The other half could be deposited in a high interest account (even if the interest is not really high). In addition, The idea is to have both long -term investments and short -term flexibility.

Above all, do not hesitate to get started. Similarly, I was able to chat with hundreds of readers over the years. Exactly zero person with good active ingredients today regrets having started early in investing.

Then welcome Christian, who asks: “What do you think of artificial intelligence with regard to stock market investments?” To see the potential for example in terms of visual creations. I wondered if there was something that exists in this sense. It’s a bit like when Deep Blue had beaten Kasparov, then Go’s game. It is intriguing to know if there is a development on the stock market money happiness | “what do too. »»

Yes, several funds managed by AI have appeared in recent years. So far, the experience is not very conclusive.

For example. the AI ​​Powered Equity Etf (AIEQ) fund launched in 2017 by Fintech Equbot, uses artificial intelligence to try to predict the management of certain stock market titles and take advantage of it. But, from July 31, 2020 to July 31, 2025, the fund had a compound annualized return of 8 %, against 16 % for the S&P 500.

Another fund controlled by AI. the US A-Enhanced Large Cap Etf (Qraft), has obtained annualized compound yields of 14 % for five years, 2 % less per year than the S&P 500, in addition to knowing more volatility along the way.

In short, nothing revolutionary. But five years is money happiness | “what do too little to make a final opinion.

As for the idea of ​​investing directly in companies of artificial intelligence: I would. like to tell you that the path to wealth is to garroche our dollars in the most hot of the hour. It would make my work very easy and rewarding.

Unfortunately, it’s not that simple.

The expectations are very high in this area. The Stratospheric Stratospheric Prices for IA companies reflect it. To hope to see the dollars quickly multiply in your investment account. the profits should create the surprise among the experts who spend their lives to analyze these companies. It is not impossible. But it is not guaranteed either.

History teaches us that investing in a handful of companies, in a sector, in a country, is unnecessarily money happiness | “what do risky.

Well-diverse investments in Canada. the United States and abroad already have an exhibition to AI companies, and can take advantage of the winners of tomorrow. Hence the famous formula of John Bogle. founder of Vanguard: “Do not look for the needle: rather buy the hay boot. »»

Finally, Alain asks: “Friends and I made several capital gains on the sale of our main residence on several occasions. Lately, my 30-year-old stepson has just made a capital gain of $ 100,000 after three years on a house whose contribution was $ 80,000. I just wanted to know why you are not talking about real estate capital gain in healthy management of. its personal finances. »»

It is true that the real estate market was generous lately. As I recently mentioned¹real estate appreciated 5.11 % per money happiness | “what do year in Canada for 20 years on average, which is very high historically.

However, few people realize that the scholarship has offered yields to light years of residential real estate return.

I like to give the example of Warren Buffett, who bought his current house in Omaha, Nebraska, in 1958. He paid it $ 31,500.

His property is now estimated at more than $ 700,000. But if he had rather invested his $ 31,500 in the stock market, this placement would be worth more than $ 23 million today.

In short, we are elsewhere. Which is normal. Residential real estate presents a low risk. Actions have a high risk. High risk must be rewarded with high -term returns to attract investors. If the houses were as paying as the actions, money happiness | “what do no one would buy actions.

My big idea, Alain, is that a house is not a financial plan. It is a place to live. If, after all the expenses, our house takes on the short or long -term value, great! It’s the icing on the cake. But it’s not the cake.

For example, many people say that their house is their retirement fund. But the overwhelming majority of retirees do not want to sell their house. Do you see the problem?

All that to say that buying a house is a form of forced savings. and it is a very good thing. But it takes more than a house to access financial freedom.

1. Read the item “Buy is throwing your money from the windows!” »»