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MarketSenseAI 2.0: Enhancing Stock Analysis through LLM Agents

Created by
  • Haebom

Author

George Fatouros, Kostas Metaxas, John Soldatos, Manos Karathanassis

MarketSenseAI: An LLM-Based Stock Analysis Framework

Outline

This paper presents the latest advancements in MarketSenseAI, a novel framework that leverages large-scale language models (LLMs) to process financial news, historical prices, corporate fundamentals, and the macroeconomic environment to support stock analysis and selection. Combining search-augmented generation and LLM agents, the novel architecture processes SEC filings and earnings announcements while systematically processing various institutional reports to enrich macroeconomic analysis. A two-year (2023-2024) empirical evaluation of S&P 100 stocks demonstrates that MarketSenseAI achieves a cumulative return of 125.9%, compared to the index's return of 73.5%, while maintaining a similar risk profile. Further validation on S&P 500 stocks in 2024 demonstrates the framework's scalability by delivering a Sortino ratio 33.8% higher than the market.

Takeaways, Limitations

Applying LLM skills to financial analysis provides insight into the robustness of investment strategies.
Demonstrated strong performance for S&P 100 and S&P 500 stocks
Presenting the potential of LLM-based investment strategies for future research.
In this paper, specific Limitations is not presented.
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