Exploding onto the scene after ChatGPT was unveiled, you’re now living under a rock without internet connection if you haven’t heard something about AI and how it’s taking over everything.
Cheap labour wasn’t a ‘thing’ or taking over the conversations when it was (cheaper costing) humans being imported & taking over other (more expensive) humans, manual tasks. In fact it was reported as the case that it had to happen and it was for the best, overall (apparently). Now the middle classes and (clutch pearls) the arts are losing synching deals to AI music, screenwriters are on strike and demanding protection from AI, writers and translators are losing roles because if you can simply prompt in the right way you’ll get what’s needed and it’s the end of the world as we know it. It might actually be that sooner than we think if the race for God like AI doesn’t take a breather - here.
It didn’t take long for someone to hit AI up for a hope of an investing quick win. Here at HindeSight towers were interested in how AI might help us, but as the info in most isn’t current, it was predictably as useful as an ashtray on a motorbike during our research.
There’s some bright spark that thinks AI will be able to give you a 500% bump with their back tested model. Here: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4412788 Can ChatGPT Forecast Stock Price Movements? Return Predictability and Large Language Model”
And so, naturally, 25K investors have stumped up $8 million and counting to find out.
$8 million.
How’s that emperor’s new clothes looking? We will have to wait to see.
The weirdest thing about this is that it’s treating the ‘modelling’ of the portfolio as if it’s something new. Models for portfolios have been a thing for a long time, it’s not new at all, and wahey(!), you have a robot do it (with human prompts and inputs) which is EXACTLY what we have been doing for our portfolio for 7 years. As much as we’d love to claim this is ours alone, it’s not. HOWEVER, the way you build it, the knowledge you add in as the secret sauce and a few other things are what makes it a better portfolio and returns builder than the other options out there.
The real secret sauce? A human with decades of knowledge to look over the data the AI spits out. That’s how you make something successful, and will that be replaced? We don’t know but so far, well, we’re golden thanks.
Interestingly, or not: Performance update of the GPT Portfolio Started on 5/16 $SPY: +1.1% ChatGPT: +1.4% Total investing alongside the portfolio: $8M
*ChatGPT portfolio 'stocks are held for ~ 1 week, sold, & the process repeats' 🤮sounds like a great set up for fees, even if they’re partnered with Robinhood and the fees are hidden…
Computer says ‘no’.
Keep It Simple Stupid (K.I.S.S) says a subscription for AI & Human looks to be the better option, ongoing. That’s what we do, that’s why we’re up against the CHATGPT model and why we’re happy to keep beating the bots.