Why the AI Can’t Give Buy/Sell Recommendations
If you’ve asked the Rallies AI “Should I buy this stock?” and didn’t get a direct answer, this article explains why—and shows you how to get the research you need to make your own informed decision.The Short Answer
Rallies.ai is an investment research platform, not a registered investment advisor. Providing personalized buy, sell, or hold recommendations requires regulatory registration and compliance obligations we don’t have. More importantly, no AI can know your complete financial situation—the information needed to give you truly personalized advice.The Legal Reason
In the United States, providing personalized investment advice is a regulated activity. The Securities and Exchange Commission (SEC) requires anyone who:- Gives advice about securities
- To specific people
- For compensation
- Fiduciary duty - They must act in your best interest
- Know your customer - They must understand your full financial situation
- Suitability requirements - Recommendations must be appropriate for you specifically
- Disclosure requirements - They must disclose conflicts of interest
- Regulatory oversight - They’re examined by the SEC or state regulators
The Practical Reason
Even if regulations didn’t exist, the AI genuinely cannot give you good personalized advice because it doesn’t know:- Your income and expenses
- Your total assets and debts
- Your other investments (401k, IRA, real estate, etc.)
- Your tax situation
- Your time horizon (when you need the money)
- Your risk tolerance (how you’d react to losses)
- Your financial goals (retirement, house, education, etc.)
- Your personal circumstances (job stability, dependents, health, etc.)
What the AI CAN Do
The AI is designed to help you research, not decide. Here’s what it does well:Present Data and Analysis
✓ “What are Apple’s profit margins and how have they changed?” ✓ “Compare Tesla and Ford on valuation metrics” ✓ “What does Apple’s balance sheet look like?”
Show Multiple Perspectives
✓ “What’s the bull case for this stock?” ✓ “What are the main risks?” ✓ “What are analysts saying—both bullish and bearish?”
Explain Concepts
✓ “What does P/E ratio mean and why does it matter?” ✓ “How do I evaluate a dividend stock?” ✓ “What should I look for in a company’s cash flow statement?”
Provide Context
✓ “How does this company compare to its competitors?” ✓ “What’s the historical valuation range for this stock?” ✓ “What happened in their last earnings report?”
How to Get What You Need
Instead of asking for recommendations, try reframing your questions:| Instead of… | Try asking… |
|---|---|
| ”Should I buy Tesla?" | "What are the main arguments for and against owning Tesla?" |
| "Is Apple a good investment?" | "How does Apple’s valuation compare to its growth rate and competitors?" |
| "Should I sell?" | "What are the biggest risks facing this company right now?" |
| "What stocks should I buy?" | "What factors make a stock suitable for [your goal, e.g., dividend income, growth]?" |
| "Is this stock right for me?" | "What type of investor would this stock be appropriate for?” |
What About Other AI Tools?
You might wonder: “ChatGPT will tell me to buy stocks. Why won’t Rallies?” A few things to consider:- General AI tools aren’t financial products. They’re not built for investing and may not understand regulatory boundaries.
- They’re often just making things up. Without real-time data, general AI tools may give confident-sounding but outdated or fabricated financial information.
- “Advice” without data isn’t really advice. If an AI doesn’t know current prices, recent earnings, or your situation, any “recommendation” is essentially random.
- Liability matters. Rallies is a financial research product. We take compliance seriously because our users are making real investment decisions.
The Role of Financial Advisors
For personalized advice, consider working with a qualified professional:- Registered Investment Advisors (RIAs) - Fee-based advisors with fiduciary duty
- Certified Financial Planners (CFPs) - Professionals trained in comprehensive financial planning
- Fee-only advisors - Advisors who don’t earn commissions on products they recommend
We’re Here to Help You Research
Our goal is to make you a more informed investor. The AI is like having a research analyst available 24/7 to pull data, explain concepts, and help you think through decisions—but the decisions are always yours. We believe in giving you the tools to make great decisions, not making decisions for you.Important: Rallies.ai is an investment research and educational platform. We are not a registered investment advisor (RIA), broker-dealer, or financial planner. The information provided is for educational purposes only. Read our full disclaimer →
Frequently Asked Questions
But I just want a quick opinion—can’t you give me that?
We understand the desire for a simple answer. But investment decisions involve your specific situation, and a “quick opinion” without that context could be harmful. The AI can give you a quick summary of bull/bear arguments, which helps you form your own opinion.What if I explicitly say I’m okay with it not being personalized advice?
The regulatory issue isn’t about disclaimers—it’s about the nature of the service. Providing specific recommendations to individuals (regardless of disclaimers) is investment advice. We’ve designed the product to help you research, which we can do without registration.Can the AI at least tell me what analysts recommend?
Yes! The AI can share analyst ratings, consensus recommendations, and price targets. That’s reporting what others say—not the AI making its own recommendation.Try: “What are analysts saying about [stock]? What’s the consensus rating and price target?”