Zero is Not Hero Yet

Hey friend!

Another week, another finance paper!

Imagine having a smart buddy, like Siri or Alexa, where you can ask money questions, like "What will Apple's stock price be next week?" or "How's my investment portfolio doing?"

We're diving into a study about how well smart assistants like ChatGPT or Bard answer these financial questions.

These assistants are great at chatting like humans, but can they handle finance questions without being trained in finance?

The research tests them on various finance tasks to see if they can figure things out on their own.

It looks into whether these assistants can manage financial inquiries based on their existing knowledge and if they're reliable for making important money decisions.

They compared ChatGPT to others, finding some performance gaps, especially with private data, suggesting some issues with data quality.

Despite these challenges, ChatGPT still does a good job at financial tasks without any specific finance training, showing its potential usefulness.

Excitingly, new models like BloombergGPT, trained on financial data, are now available, making it an exciting time in the world of finance and AI.

However, we are still faced with the challenge of the models being closed-sourced. For example, BloombergGPT is quite expensive for the common man to afford.

So where does this leave you as a retail trader? The big sharks will keep having access to these models which may be giving them an edge in the market.

I don’t think technical analysis alone is enough.

You need fundamentals, keep tabs on the news, keep tabs on social media, etc. For example, Elon can tweet anything and that would change the price of any of the stocks of his companies.

The paper can be found here.

That’s all for today. Happy trading!