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I have a question for you.
Do you think that all the technology surrounding us these days helps you to become smarter or dumber?
Now, don’t take it personally – I’m not doubting your intelligence.
But think about it in broad terms: is technology making you think more, or less?
The way I see it is, by making our lives easier, the cost of this improved efficiency is we automatically think less.
When I was younger, I used to know dozens, even hundreds, of my mates’ phone numbers. Since I brought my first a mobile phone, I can barely remember one. I have trouble recalling my own.
Just not something I need to know anymore.
And remembering the little details like this seems to get harder. I mention this because the same thing might apply to investing, especially in the Chat GPT era.
But unlike whether you can remember phone numbers, this could be a BIG DEAL for your financial health.
And frankly, you need to be ready for this today too.
You’ll have seen the vast array of use cases for ChatGPT and similar programs during 2023. And they are growing by the day.
Of course, it was inevitable that this technology would migrate into markets and investing.
And it’s here where Chat GPT could make a big difference. Look at the following headline.
Source – research gate
Yet this is where your problems begin. Because as the emotion over the next few years is about to ramp right up, you cannot afford to think less.
Yet, like above, that’s exactly what you’ll be told to do.
You’ll be told to trust leaving your investment decisions to AI and the evidence will prove so overwhelming that the investments you make may “seem” to be underperforming in comparison.
Forewarned is forearmed.
It’s time for you to make your decision.
One that will have a stark impact on you as we head towards the peak of the cycle.
Are you ready?
The one factor AI cannot ever overcome.
The premise here is straightforward. I believe that most people who have heard about AI have no idea how it works or how it’s designed to accomplish it.
This leads to a situation where normal folk become so caught up in the hype surrounding its potential that they decide to take this technology for granted, without ever getting to see how it works properly.
They are happy to have it, can see perhaps the benefits to them personally are, but are reluctant to dive into the technical side to truly understand its inherent strengths… and weaknesses.
And I think that’s fine.
Some of you reading this may be more technically minded and indeed very interested in the technology involved.
Again, no problem, but at this early stage of adoption, you really are the minority here!
My point is more subtle though. Assuming how many people are ignorant of the true technology behind AI, how is it possible they would even see the set-up here? They are basically blind to it.
It’s one where timing runs headfirst into technology.
The timing is the second more speculative half of the 18.6-year Real Estate Cycle.
The technology is the ability of AI to outperform your preferred fund manager when it comes to making outsized gains in the market.
You can’t make it up.
This CNN article I quoted above requires further explanation. Here’s an excerpt from it below.
A basket of stocks selected by ChatGPT, a chatbot powered by artificial intelligence (AI), has far outperformed some of the most popular investment funds in the United Kingdom.
Between March 6 and April 28, a dummy portfolio of 38 stocks gained 4.9% while 10 leading investment funds clocked an average loss of 0.8%, according to an experiment conducted by financial comparison site finder.com.
It wouldn’t “be long until large numbers of consumers try to use [ChatGPT] for financial gain,” Jon Ostler, Finder’s CEO, said in a statement earlier this week.
Finder’s analysts took the 10 most popular UK funds on the Interactive Investor trading platform as a benchmark for assessing the performance of the ChatGPT-generated fund. Funds managed by HSBC, and Fidelity were among those selected.
They did this by using some commonly used criteria (such as debt levels and record of growth).
This is an interesting development. I’m sure you’ll hear a lot more about AI and about replacing private equity fund managers soon.
And it’s not simply an experiment or solely found on the margins.
A survey of 2,000 UK adults conducted by Finder last week showed that 8% had already used ChatGPT for financial advice, while 19% said they would consider doing so.
This is gaining serious momentum.
But it is also where the problem begins. Because there’s one thing that even AI won’t overcome. In fact, it’s amazing strength (synthesising vast data quickly and communicating it efficiently, like a stock recommendation) becomes its weakness.
This is something that no one is talking about publicly.
The one massive flaw.
Every market has a certain type of participant that is not the same as the others. These are the ones who can outsmart other markets players, whether they are human or some type of AI algorithm.
They can manipulate things to their own benefit. And not yours.
They have a name: they are called ‘insiders.’
These are the select few who precisely know everything that’s going on in all publicly-listed companies. And unless a chat-bot like ChatGPT grows legs and can walk into these boardrooms of listed stocks, it will never know the truth.
Here’s the set-up.
When insiders know that people are using ChatGPT to recommendations what will they do? Make sure that such programs pick up news they want it to.
And what they want is not what you want. Because investing in markets is a zero-sum game.
They want to sell something to a buyer at a high price. And buy it off a seller at a low price. So, when the price is high, they will release good news. And vice versa.
It’s this data that ChatGPT will pick up and make recommendations to you.
The problem? Garbage in = garbage out.
This is how insiders manipulate the market and have done so ever since markets began.
And now you’re telling me almost 20% of UK adults may strongly consider using ChatGPT for financial advice.
The set up is just delicious!
So, what can you do about it? Two things actually.
One is you need to learn the timing of the 18.6-year Real Estate Cycle and accept the emotional and volatile nature of the 2nd more speculative half and the damage it could do to your finances.
Secondly, you must learn to correctly interpret and read a stock price chart.
Fortunately, you can learn both here via a membership to the Boom Bust Bulletin (BBB). Give me the opportunity to take you in-depth into the cycle.
Learn about the over 200-year history of the 18.6-year Real Estate Cycle and why even today it continues to repeat like clockwork.
It will teach you how to decipher the news that we get bombarded with every day to focus solely on what truly matters.
No more negativity and noise, just the science of the economic rent and the timing inherent in the real estate cycle.
This is all you need to succeed.
Here’s an example of how the news fools you (pre- ChatGPT). Think how much more opportunity there will be now for this to occur? Click on the chart to open it in a new browser.
Source – Optuma
I found four headlines from 2021 detailing reports concerning iron ore and resources in general from the Australian Financial Review.
I overlaid those on a chart of Fortescue Metals, one of Australia’s biggest iron ore exporters.
The green arrows show you the date of the articles.
Now imagine ChatGPT reading those headlines!
This is how insiders manipulate markets. Believe me, they will manipulate AI as well in this regard.
And as the real estate cycle peaks, this dynamic is going to become even more pronounced.
There is only one thing in financial markets that you can trust will not lie to you.
And that’s a stock chart.
That’s how the BBB can help.
As a Boom Bust Bulletin member you will receive 12 monthly editions a year detailing all the key turning points of the cycle, a deep dive into the most important markets across the globe and ways that you can personally benefit from this knowledge.
Plus, you’ll receive exclusive invites to BBB member-only webinars when we run them.
Unlike central bankers you’ll have the knowledge you need to stay AHEAD of the curve. When the headlines scream inflation and central bankers panic, you’ll stay calm and make decisions accordingly.
This is all derived from our unique and proprietary research – which you’ll not find anywhere else.
All this for just US $4 a month, less than a takeaway coffee.
Is this an investment you can afford not to make?
Best wishes,
Darren J Wilson
and your Property Sharemarket Economics Team
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This content is not personal or general advice. If you are in doubt as to how to apply or even should be applying the content in this document to your own personal situation, we recommend you seek professional financial advice. Feel free to forward this email to any other person whom you think should read it.