According to recent media reports, ChatGPT, a chatbot powered by Artificial Intelligence (AI), has significantly outperformed some of the most popular investment funds in the UK with its selection of stocks. According to a recent experiment conducted by financial comparison site finder.com between March 6 and April 28, a dummy portfolio of 38 stocks selected by ChatGPT gained 4.9 per cent, while 10 leading investment funds clocked an average loss of 0.8 per cent. CNN reported on the results of the experiment, highlighting the potential for ChatGPT to guide the decisions of retail investors.
As a benchmark for evaluating the performance of the ChatGPT-generated fund, Finder’s analysts chose the 10 most popular UK funds available on the Interactive Investor trading platform. Funds that were managed by HSBC and Fidelity were included in the selection. The analysts tasked ChatGPT with selecting stocks using common criteria, such as choosing companies with a history of growth and low debt levels. Microsoft, Netflix, and Walmart were among the companies that ChatGPT selected based on these criteria.
The potential for ChatGPT to guide the decisions of retail investors was emphasized by Jon Ostler, Finder’s CEO, who stated that it wouldn’t “be long until large numbers of consumers try to use (ChatGPT) for financial gain.” This sentiment was echoed in a survey of 2,000 UK adults conducted by Finder, which showed that eight per cent had already used ChatGPT for financial advice, while 19 per cent said they would consider doing so.
Although major funds have been utilizing AI to aid their investment decisions for several years, ChatGPT has democratized this technology, making it accessible to the general public. Nevertheless, as per a CNN report, a significant 35 per cent of individuals surveyed claimed that they would not consider employing the chatbot to assist them in making financial decisions.
Aside from surpassing investment funds, a study released in April by the University of Florida researchers revealed that ChatGPT was capable of predicting the stock price movements of particular companies more precisely than some elementary analysis models. This demonstrates the potential of AI-powered chatbots like ChatGPT to help investors make informed investment decisions.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
