Research on Financial Investment Strategy Optimization with The Aid of Large Language Model

Authors

  • Jiayi Li

DOI:

https://doi.org/10.62051/ijgem.v6n3.17

Keywords:

Big language models, Financial ethics, Investment philosophy, Decision support, Text analysis

Abstract

This paper discusses the role and influence of large language model (LLM) in the optimization of financial investment strategy from the perspective of humanities and social sciences. By reviewing the evolution of investment behavior, psychology, and LLM, the paper builds a theoretical framework for understanding how these advanced technologies can help investors make more informed decisions. In particular, this paper emphasizes the importance of LLM as an information intermediary, which can interpret and integrate information from financial news, social media and other channels to help investors better grasp market sentiment and facilitate exchanges and interactions among investors. Further, the paper analyzes the ethical principles and social responsibilities that should be considered when applying LLM to investments, and proposes a new investment paradigm of human-machine collaboration, in which human intelligence and technical capabilities complement each other. Finally, the paper looks forward to the impact of technological progress and social change on financial markets, and discusses the challenges and opportunities brought about by the integration of different cultures and technologies in the context of globalization. This study not only provides policy makers with recommendations on the responsible application of technology, but also points the way for future research aimed at promoting a more transparent, fair and efficient financial environment.

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References

[1] Chen Y. Designing an Investment Research System for Asset Management Based on Natural Language Processing [D]. Massachusetts Institute of Technology, 2023.

[2] Kong Y, Nie Y, Dong X, et al. Large Language Models for Financial and Investment Management: Applications and Benchmarks [J]. Journal of Portfolio Management, 2024, 51(2).

[3] Nie Y, Kong Y, Dong X, et al. A Survey of Large Language Models for Financial Applications: Progress, Prospects and Challenges [J]. arxiv preprint arxiv:2406.11903, 2024.

[4] Modeling languages in mathematical optimization [M]. Springer Science & Business Media, 2004.

[5] Ndikum P, Ndikum S. Advancing Investment Frontiers: Industry-grade Deep Reinforcement Learning for Portfolio Optimization [J]. arxiv preprint arxiv:2403.07916, 2024.

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Published

26-04-2025

Issue

Section

Articles

How to Cite

Li, J. (2025). Research on Financial Investment Strategy Optimization with The Aid of Large Language Model. International Journal of Global Economics and Management, 6(3), 119-125. https://doi.org/10.62051/ijgem.v6n3.17