Numerous articles on how to use ChatGPT for various life situations and professions to improve work and processes have also been published in the past few weeks.
Naturally, I am interested in streamlining both the research and investment processes, which raised the intriguing topic of how ChatGPT may be used for investing.
In order to make investment decisions, analysts might use ChatGPT to analyze financial statements and other data.
Additionally, ChatGPT can assist in spotting market data trends and patterns that could otherwise, go unnoticed because of how swiftly ChatGPT operates, it can complete this task considerably more quickly than a person.
It offers a person, at the very least, a beneficial, rapid starting point from which to explore deeper.
Let’s take a look at a few of the subjects that analysts typically examine, and where ChatGPT might be a useful helper.
Business Description It can explain a company’s business model, revenue generation methods, and operational procedures.Additionally, if we dig a bit deeper, we might ask for details about a company’s management group or its many business divisions. (of course, keep in mind that the information might not be accurate).
Acquisitions We may once more ask for more detailed information about a certain acquisition, and it can display the most significant acquisitions over a specific period of time.
Competitors We can ask ChatGPT to list potential competitors of a business and get solid results.
Performance Both the basic performance of the company’s operations and the performance of the stock price may be disclosed to us. Sometimes it also makes comparisons with other firms and how they performed around the same time.
Data analysis Large datasets can be analyzed with ChatGPT to discover patterns that are difficult to see with conventional analysis techniques. It can swiftly spot trends and patterns by being trained on data, which can help with financial modelling and decision-making.
Limited capabilities While calculating a relative valuation ratio should be doable provided ChatGPT has access to the most recent data, determining an intrinsic value for a company is more difficult and appears to be beyond the scope of ChatGPT’s capabilities.
Even if ChatGPT were able to draw these inferences that are used in a discount cash flow calculation, I suppose that it would still not create an intrinsic value because people might base their judgments on that knowledge and the corporation could be held accountable.
In conclusion, ChatGPT is certainly not a shortcut to reaching an investment decision about a certain company or stock. The final decision on whether to invest in an asset is still our own responsibility.
However, ChatGPT can help us in the research process and get the necessary information. Information and data by themselves are not enough as we still must interpret the data and make a final investment decision, but it can make the research process more efficient.
The Author is co-founder and director, Credent Asset Management
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
