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Can ChatGPT beat the market?
I've had a few people send me articles over the past week about how stocks chosen by ChatGPT are outperforming the S&P 500.
There was another one yesterday on Twitter where some guys gave ChatGPT a bunch of instructions and asked it to create a portfolio for them.
It was actually a pretty decent exercise... and gave some interesting ideas ranking stocks on recent earnings reactions and social sentiment.
Including recommending companies like Berkshire Hathaway, Google and First Solar.
But then it took a turn for the worse.
The same people then bragged that the "ChatGPT Fund" outperformed the S&P 500... OVER THE COURSE OF 1 DAY.
And off the back of that they're now raising money for the fund itself... with $6m raised from 11,000 investors.
For me, raising money for a fund off the back of a single day's outperformance is reckless at best and downright misleading at worst.
And you'll be seeing A LOT of these type of things where companies want you to pay them thousands for a "Secret AI powered machine learning portfolio trading active management blah blah blah" type thing.
Because AI is the hot topic right now... even though hedge funds have been using AI and machine learning tools for over a decade with mixed results.
So while tools like ChatGPT can be incredibly useful for helping you research stocks
(In fact inside Capital Gains Multiplier we're already using it to speed up our process)
What it can't do right now is run your portfolio for you.
And that's an incredibly important distinction to make.
Don't let 1 day of beating the market distract you from that.
Anyways... if you want to learn how to use AI to benefit your portfolio... I wrote a bonus chapter inside our latest book
The AI Stock Investor
You can get your copy by going to the link below
Oliver
The Investing Coach
Become a better investor in just 3 minutes a day. Daily newsletter read by 7,400 smart investors including CEOs, professional wealth managers and FAANG Executives. Recommendations are beating the S&P 500 since inception.
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