Basic Python ChatBot for investment questions
To execute just be sure to have python installed with numpy library added.
Example: python3 financeChat.py
HikeTech Bot: Hello! I'm the HikeTech Bot and I was created to help you on basic investment questions, what's your name? My name is Juan HikeTech Bot: Hello juan, let me know your investment question.
How to start? HikeTech Bot: The first step is to determine what you want to achieve with your investing, whether it’s in the short-term or long-term. Are you primarily saving for retirement, which means you may not access that money for decades? Or is there some other major goal, like an expensive dream trip, that you’d like to take in a few years? Next, you should think about how hands-on you want to be with your investing. Ask yourself, Do I want to get into the nittygritty, evaluating multiple investments, and agree to do that regularly? Or would I rather set it and forget it?
What types of investments exist? HikeTech Bot: Stocks are probably the most well-known option, but picking and choosing individual companies to invest in is not how most people get involved in the market. Instead, you might want to consider an index fund, which invests in the securities included in indexes like the S&P 500 or NASDAQ. Bonds—investments in which you loan money to a corporation or government at a fixed interest rate—are another major asset category. They tend to offer lower returns than stocks, but there’s typically also less associated risk because their prices are largely based on the creditworthiness of who’s issuing the bond, as well as the bond’s interest rate, and not market fluctuations. Generally, the longer you have before needing the money, the more risk you may be able take on; this might mean that you hold more stock investments (like stock index funds) in your portfolio. But as you draw closer to withdrawing, the more you may want to skew toward conservative assets, like bonds, because you want to decrease the volatility in your portfolio the closer you get to needing the money. Beyond stocks and bonds, there are alternative investments, such as real estate or commodities. You can now consider investing in real estate investment trusts, also known as REITs. The same is true for commodities, like precious metals or oil—you don’t have to buy bars of gold or barrels of oil. You can invest in exchange-traded funds, or ETFs, that track commodity markets. Mutual funds are also a way to incorporate a variety of assets into your portfolio, because they can hold stocks, bonds, real estate and commodities.One of the main reasons to consider investing in commodities is that “they serve as inflation hedges” “During times when there’s higher-than-normal inflation, these investments tend to do pretty well. And the closer [you are] to withdrawing your money, the more inflation becomes a concern.”
Is it risky? HikeTech Bot: Being a master stock-picker may sound sexy, but for most investors, it’s probably a bad idea. Studies show that choosing stocks is almost always a losing proposition—even for the pros. “The risk [versus] reward of owning stocks is simply not in your favor”. Plus, the more you trade stocks, the more likely you are to incur trading fees, which eats into any money you’d make. The bottom line: You don’t have a crystal ball. “I think we are very naïve if we feel like we have the secret to selecting which companies will perform well and which will fail”.
Is it complicated? HikeTech Bot: Coul'd you rephrase? Is investment complicated? HikeTech Bot: It isn’t. It is simple but not easy. A bit like going to the gym. Working out and eating well is harder than doing the right thing.
Do I need to track my portfolio? HikeTech Bot: To check and track your portfolio depends—on you. Maybe you get joy from watching the numbers go up or perhaps the ups and downs seriously stress you out. “The frequency is less important than having a set schedule,” Blaylock says. Winkler suggests twice a year, or even once a year may be fine if you’re fairly comfortable with how your portfolio is performing. The key is not to move your investments on a whim just because you see a drop in the stock market or hear that the S&P 500 hit a new record. A good rule of thumb is to consider rebalancing once a year to help ensure that your asset allocation (the percentage of your money dedicated to various types of assets) has not strayed too far from what you’re comfortable with, and if your portfolio is more than 5% off from your model asset allocation, think about making some adjustments. “Keep from making reactionary decisions”. “Set aside time to review your investments regularly, but outside that, don’t look at them. Just do it on your schedule.”
Have a good one! HikeTech Bot: A very good one for you too
bye HikeTech Bot: It was my pleasure to chat with you, have a great day!
