Besides catching hints of asset bubbles and sensing early signs of market disruptions by analysing patterns from historical data, macroeconomic numbers, and market behaviour, AI and ML models may come handy in ‘stress testing’ of banks. It could help regulators to be better positioned in ensuring that banks have enough capital to absorb shocks from slowing economy and plunging markets.
Big investors ditch tech ahead of expected September stocks slump
Big investors, fearful of September’s typical seasonal declines, exited profitable stock positions on Tuesday, according to investors and trading company research, a sign the selloff