Market Return

Market return prediction aims to forecast the profitability of financial investments, a crucial task for investors and portfolio managers. Current research heavily utilizes machine learning, employing models like LSTMs, gradient boosting, and large language models (LLMs) such as FinBERT and ChatGPT, to analyze diverse data sources including macroeconomic indicators, social media sentiment, and company financial reports. These advancements offer improved accuracy in predicting returns, particularly for actively managed funds and smaller stocks, though challenges remain in handling market volatility and ensuring model robustness. The findings contribute to more informed investment strategies and a deeper understanding of market dynamics.