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Adapt or Perish: Why AI Is Rewriting the Rules of Investing

Keith Kaplan Mar 27 2026, 7:30 AM EST Market Minute 7 min read Print

Managing Editor’s Note: Today, we’re hearing from TradeSmith CEO, Keith Kaplan, with a message every investor needs to read. 

Keith has spent decades at the intersection of finance and technology – building TradeSmith into one of the most innovative investment research and analytics platforms available to everyday investors today. Under his leadership, TradeSmith has developed cutting-edge tools that bring institutional-grade analysis directly to individual investors. 

Now, Keith is sounding the alarm on one of the biggest shifts he’s ever seen in the markets, and introducing the AI-powered trading system he believes can help everyday investors not just survive it, but profit from it. 

Here’s Keith… 

Adapt or perish. 

Thanks to the rapid advancement of AI, that’s the Darwinian prospect every investor is facing right now. 

Just look at the stellar jumps both Meta Platforms and Microsoft saw on Thursday morning after they reported their Q2 earnings: MSFT saw an 8% pop, and META soared an amazing 13%.  

Both stocks, of course, settled a bit after the initial euphoria, but the message is clear: These companies are moving in the right direction. Their leaders know that if they don’t keep up with – or even surpass – the expectations of the times, they’ll go the way of the dinosaurs… in perhaps an even more explosive way.  

To quote Meta’s CEO, Mark Zuckerberg:  

“AI keeps accelerating, and over the past few months, we’ve begun to see glimpses of AI systems improving themselves.” 

Even the improvements are improving… and that’s saying a lot.  

I am certainly not saying to go out and grab a bunch of Meta or Microsoft stock right now, but what I am saying is that AI is not limited to company applications… 

We have to learn how to use AI ourselves as investors.  

And those who want to survive and thrive must integrate AI into their wealth-building process as quickly as possibleThose who fail to do so will be left behind…  

But don’t just take my word for it: Let me show you why the old way of trading simply won’t work anymore… 

The Old Rules No Longer Apply 

There’s a frantic “arms race” on Wall Street to develop ever more sophisticated AI systems to extract profits from the markets. 

And this technology has proliferated at a pace even I didn’t fully anticipate. 

Here’s just a small sample of developments from the past year… 

  • Steven Cohen’s Point72 Asset Management’s new (AI)-focused fund posted a 14% gain just three months after launching in October 2024. That’s more than twice the 6% gain for the tech-heavy Nasdaq over the same timeframe.  
  • Paul Marshall and Ian Wace’s AI-powered Trade Optimized Portfolio System (TOPS) synthesizes thousands of trade ideas – as well as data from social media – to find winners Its algorithm-powered strategy netted 23% in 2024 and a further 7% in 2025.  
  • According to an article in The Wall Street Journal, model portfolios – many driven by algorithmic or AI-based strategies – now manage nearly $8 trillion. And more than 80% of fee-based advisers use them for at least some client money. 

AI isn’t hype; it’s reshaping how money gets managed on a gargantuan scale. 

And this shift toward AI by deep-pocketed money managers is happening right when the gains from buy-and-hold investing are becoming more difficult to find… 

Take this year, for example. 

If you had invested $5,000 in the S&P 500 on January 2, you’d be down about $200 today. 

That’s the wrong kind of asymmetric bet. You have to risk a ton to lose a small amount. 

In the meantime, you’d have experienced the highest level of volatility – a.k.a. whipsawing stock prices – since the COVID crash in 2020. 

In April 2025, the S&P 500 plunged 11% over just two trading days. 

That wiped out $6.6 trillion in stock market value.  

A couple days later, we got a one-day rally of 9%. 

This is NOT normal. 

These are just a few examples, but they prove a point that many retail investors are reluctant to admit… 

The old rules no longer apply. If you’re relying on buy-and-hold to build your nest egg, you’re getting eaten alive by volatility.  

Make no mistake, this is just the beginning.  

With geopolitical conflict rising around the world… the pace of technological progress upending entire industries… and intense political battles playing out across America folks betting on a return to normalcy are kidding themselves. 

Add in the widespread adoption of AI on Wall Street, and the rules of investing and trading are about to be rewritten. 

I don’t say this lightly. It’s a trend I’ve been tracking for many years. And it’s only going to accelerate. 

But there’s hope. 

Because these powerful trading tools are no longer locked away inside billion-dollar quant funds. 

Thanks to TradeSmithGPT – the AI trading system we launched earlier this summer at TradeSmith – everyday investors can now also tap into the power of AI to boost profits. 

According to a report from the SEC, hedge funds deploying AI-driven trading strategies outperformed their peers by an average of 12%. The system we’ve developed can do even better… 

Like a 69% gain in four days from the crash of Estee Lauder in late February of 2025… 

Or 148% in 5 days from CarMax’s jump in April 2025 – amid the tariff turmoil, mind you.  

Now, not every trade will be a winner. So, you should never invest more money than you can afford to lose. 

But with its ability to process complex information and adapt to changing market conditions, TradeSmithGPT is becoming an indispensable tool for everyday investors. 

However, TradeSmithGPT has been around for a few weeks now… 

And it’s gotten quite a lot of attention… 

So much so, that we’ve had to limit the amount of TradeSmithGPT users.  

We’ve briefly reopened its doors to allow only 250 new members – and to sweeten the deal, we have a new AI trade alert in the barrel and ready to go out on Tuesday, March 31.  

So, the choice is yours when it comes to your money: adapt, or watch your hard-earned cash perish. 

But act quickly: This opportunity expires Monday, March 30, at midnight Eastern Time.  

And until then, click here to see how you can get started with TradeSmithGPT.  

I hope to see your name on the new user list.  

Go here now for details.