Returns from any asset class come with a certain degree of risk. Investors want to minimise risk to get better returns. But different assets perform differently under different economic environments. For example, when inflation is high, gold tends to deliver better returns than stocks. This is where investors use dynamic asset allocation and rebalancing within their investment portfolio. It helps them to take advantage of better-performing assets. At the same time, it also reduces their risk exposure. What is Dynamic Asset Allocation and Rebalancing? Dynamic asset allocation is an investing strategy where allocation of money to different assets is done as per changing market conditions. Asset allocation is based on factors like market valuations and risk conditions. For example, if valuations are attractive, exposure to stocks can go high, but if risk increases, this exposure can be reduced and shifted towards debt instruments like government bonds. Rebalancing simply means bringing th...
OpenAI has recently unveiled Sora, a groundbreaking AI model capable of generating lifelike videos, sparking both excitement and curiosity within the tech community. Sora operates as a text-to-video diffusion model, producing videos up to a minute in length that are remarkably realistic, blurring the lines between reality and simulation. The response to Sora's introduction has been divided, with discussions ranging from its potential to revolutionize video production to inquiries about accessibility. Addressing the former question is expected to involve complex discussions surrounding artistic rights and regulatory considerations. As for accessibility, the answer is straightforward: Sora is not yet available for public use. While the announcement of Sora was made public today, OpenAI has emphasized that it remains in the red-teaming phase. This critical stage involves rigorous adversarial testing to ensure that Sora does not produce harmful or inappropriate content. Additionally, O...