The title Why ChatGPT will never beat the stockmarket was thoroughly explained within the article. Taking the example of potential changes in petroleum rent tax (PRRT) which may have an impact on the profits of Woodside & Santos, that were traded in ASX-Listed. Referencing to the idea that people may speculate whether to sell off their shares as an AI bot could have potentially sold the stocks prior.
Benjamin Graham held the view of market efficiency in the 1930’s, and so plenty of commentators on this topic have suggested computers will soon beat the market. AI bots can read headlines and assume stock price movements, however, in order to beat the market, this is far from what is reality as the bot could have sold shares before the events that impacted stock price.
Netflix shares were seen falling in the after-hours trading resulting from headlines about missed estimates for the current quarter, yet AI bots would have been in the same boat and missed out the same. Technical analysis is used by many but rarely works as the charts represent past data and not the foreseeable future.
ChatGPT has the capacity to put out headlines predicting certain movements of stock prices however this is hardly generating better results than humans as they are unable to accurately predict future events that can greatly impact stock prices.
The company mentioned in the article was Woodside, an offshore energy producer in Australia. It is a world-leading provider of energy, offering a wide range of oil, gas services and conversions to customers. Woodside has a long history in the energy sector and is committed to investing in the future. With the change in PRRT the value of the company is estimated to fall by 2 to 5%.
The person mentioned in the article was Benjamin Graham. He was a prominent investor and economist from the 1930s to the 1950s who played a huge role in showing how the stock market works. He proposed the infamous “value investing” theory, and is often called the “father of value investing.” He emphasized the importance of evaluating investments, looking at the intrinsic risk of any security, and not just relying on short-term market fluctuations. Benjamin Graham also served as Warren Buffet’s mentor which made a profound impact on Buffet’s investing career.
