ChatGPT Enters the Investing World – But We Were There First

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When ChatGPT was launched near the end of last year, I knew it was only a matter of time before this artificial intelligence (AI) technology would be unleashed into the world of finance.

That time has arrived.

Just check out this Bloomberg headline from earlier this month:


Two different ChatGPT tests were conducted: One had the AI bot decipher whether Federal Reserve statements were dovish or hawkish; the second used the tech to decide whether headlines were good or bad for a stock.

In the first study, researchers from the Federal Reserve found that ChatGPT beat a commonly used deep learning model from Google called BERT in coming closest to humans in determining whether the central bank’s statements were hawkish or dovish.

The example below shows how ChatGPT’s interpretations closely mirror those of the Fed’s human research associate, Bryson:


Source: “Can ChatGPT Decipher Fedspeak” by Anne Lundgaard Hansen and Sophia Kazinnik

In the second study, two University of Florida professors told ChatGPT to act like a financial expert and determine whether corporate news headlines had positive, negative, or no implications for companies’ future stock prices.

The study found that ChatGPT’s interpretations had a statistically significant positive correlation to a stock’s price action the following day, indicating that ChatGPT was able to decipher implications of the news.

In one example, ChatGPT explained that the headline “Rimini Street Fined $630,000 in Case Against Oracle” was a positive story for Oracle because the penalty could “potentially boost investor confidence in Oracle’s ability to protect its intellectual property and increase demand for its products and services.”

Is this a better way to put ChatGPT to work than asking it to whip up a recipe or write a love poem?

Yes.

Are there even more advancements coming that will supercharge AI and investing?

Absolutely.

Is this going to usher in a new wave of AI investing?

At least for TradeSmith, the answer is no.

That’s because we were here first: We were already putting machine learning, automated systems, and advanced algorithms to work in the tools we offer. And we’ve been doing that for years.

And on April 25, we’re taking it to a whole new level…

Meet An-E

Imagine if you knew that in one month a certain stock would be worth 10% more than it is today.

Would you buy shares?

Of course you would.

Now imagine knowing that a stock would be worth 10% less in one month.

Would you avoid it with that information in hand?

Absolutely.

Well, a revolutionary new predictive market algorithm driven by AI will soon be released that can make just such predictions with astonishing accuracy.

With incredible computing power and AI at our fingertips, our team embarked on the most important research project in our company’s history… one that could help you make much bigger stock market returns than you’re making now, while taking less risk.

We call this “Project An-E” (pronounced Annie).


Let me show you a quick example of An-E at work.

This is one of An-E’s predictions from late last year for the stock Ameren Corp. (AEE):


The red X marks when An-E made its prediction, and the blue circles represent where it predicted Ameren’s stock price would go one week, one month, and two months later.

Well, here’s how those predictions played out:


An-E was nearly spot on.

And that’s just one of An-E’s predictions…

It’s not an exaggeration to say that this is a new edge most investors have been lacking.

If you hold on to stocks An-E says are primed to move higher, you could withstand volatility with confidence and earn better returns.

On the other hand, if you stay away from the stocks An-E says are poised to go down, you could avoid punishing losses.

Both of these outcomes could mean you’d no longer have to worry about not having enough money for retirement or outliving your nest egg.