[JPMorgan's AI Agent Outperforms 60/40 Portfolio in Backtesting] According to Bloomberg, JPMorgan researchers have developed multiple AI investment agents capable of dynamically adjusting allocations between stocks and bonds based on market conditions. Backtesting shows that the best-performing AI agent over the past two decades achieved an annualized return 0.7 percentage points higher than the traditional 60/40 portfolio, with lower volatility, and also outperformed JPMorgan's own rule-based market state model. Researchers noted that these results are based on historical simulations rather than live investments, cautioning against interpreting them as evidence that AI can consistently outperform the market. They emphasized that 'AI agents must be grounded in a well-thought-out asset allocation process, rather than naively assuming the agents themselves can serve as a source of domain expertise.'