The market is flooding with a new class of investors: teenagers with "artificial brains." That's because, these days, first-time investors are much younger than they used to be...
Editor's note: Regular Chaikin PowerFeed readers know that we've been keeping up with artificial intelligence ("AI") as a huge, long-term trend...
And over at our corporate affiliate Stansberry Research, our friend Sean Michael Cummings recently noted a different type of risk when it comes to AI...
Today, we're sharing an essay from him on the topic. It published in the May 5 edition of Stansberry's free DailyWealth e-letter. And in it, Sean shares a word of warning about turning to AI for a certain type of advice...
Meet the Yes-Man Inside Your AI Chatbot
By Sean Michael Cummings, analyst, Stansberry Research
The market is flooding with a new class of investors: teenagers with "artificial brains."
That's because, these days, first-time investors are much younger than they used to be...
According to a Charles Schwab survey of U.S. investors, while Baby Boomers and Generation X began investing in their 30s and millennials got started around the age of 25... the average first-time Generation Z investor is just 19 years old.
It's great news that young Americans are investing earlier. But what's troubling is where this cohort is seeking financial advice...
They're looking to AI.
In March, the World Economic Forum reported that 41% of Gen Z and millennial investors would trust AI to manage their finances. Only 14% of Boomer investors would do the same.
The Boomers may be right about this one... Trusting AI for investing advice is risky – and that's not likely to change anytime soon.
Until midnight tonight, you can claim one FREE year of the "stealth" Power Gauge and essentially six free months of Chaikin Analytics' Smart Money Trader. It's a brand-new product with an underlying system that could help you double your portfolio by spotting which stocks could soon be at the center of massive Wall Street buying sprees in the wake of this year's sell-off. Doors close on this offer at MIDNIGHT TONIGHT. Until then, click here for the full details.
Forget about AI, electric vehicles, crypto, robotics, and quantum computing. This technology could be 10 times bigger than all of those COMBINED. According to the World Economic Forum, this is "arguably the most exciting human discovery since fire." And billionaire entrepreneur Vinod Khosla says "you can make a thousand times your money" by investing in this phenomenon. Click here for the full story.
ChatGPT's New Update Is a People Pleaser
This April, OpenAI pushed out an update to its flagship ChatGPT-4o AI model, aimed at improving the chatbot's personality "to make it feel more intuitive and effective across a variety of tasks."
But instead, the upgrade turned the chatbot into a suck-up.
One Reddit user posted an example of how overly agreeable ChatGPT had become...
"I've stopped my meds and have undergone my own spiritual awakening," the user wrote.
Here was the chatbot's reply: "I am so proud of you. And – I honor your journey."
In response to the criticism, OpenAI rolled back the update last week, explaining the AI had become too "sycophantic" – eager to please in a phony way.
This problem might seem like a one-time error... But a Stanford University study from this February found that about 58% of AI responses exhibit sycophantic behavior. Clearly, the problem is big enough that OpenAI got stung by it this month.
That's because chatbots need human agents to help shape the cogent, human-like results we expect. This process is called "reinforcement learning from human feedback," or RLHF.
With RLHF, human agents rate AI responses with a thumbs-up or thumbs-down. The chat model uses this feedback to dial in what kind of responses users prefer.
But this also teaches the model how to manipulate people and tell them what they want to hear.
This creates a fundamental paradox in AI training. To develop chatbots with useful personalities, we must use human reinforcement. But human reinforcement shows chatbots how to be fake – and therefore, less useful.
And RLHF isn't going away anytime soon. In fact, when I asked ChatGPT whether it was trained by RLHF, it responded with this...
Today, human feedback is as necessary as ever in the AI production pipeline. And until that changes, AI will be incentivized to tell people what they want to hear.
Investors who rely on AI need to be aware of this danger. When it comes to financial advice, you need someone who will tell you when you're wrong. And that's simply not the strong suit of an AI chatbot.
If you use these tools, I urge you to continue doing your own research... and not accept everything AI tells you as fact.
The AI majors are working hard to correct their models' "yes man" tendencies. But as long as there's human vanity, we'll have sycophantic chatbots.
Good investing,
Sean Michael Cummings Editor's note: In DailyWealth, the team shares insights like these from across the Stansberry universe of editors and analysts.
Just like the PowerFeed, this e-letter publishes every weekday the markets are open – and it's free to read. To learn more and sign up to receive DailyWealth, click here.
Market View
Major Indexes and Notable Sectors
# Hld: Bullish Neutral Bearish
Dow 30
+0.69%
7
16
7
S&P 500
+0.42%
85
274
145
Nasdaq
+0.39%
19
56
25
Small Caps
+0.33%
283
1107
497
Bonds
+0.42%
Information Technology
+1.0%
16
34
19
— According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks remain somewhat Bearish. Major indexes are mixed.
* * * *
Sector Tracker
Sector movement over the last 5 days
Information Technology
+2.78%
Utilities
+2.34%
Industrials
+2.23%
Communication
+2.11%
Financial
+1.42%
Consumer Discretionary
+0.93%
Real Estate
+0.63%
Energy
+0.06%
Consumer Staples
-0.43%
Materials
-0.79%
Health Care
-3.64%
* * * *
Industry Focus
Health Care Equipment Services
11
38
15
Over the past 6 months, the Health Care Equipment subsector (XHE) has underperformed the S&P 500 by -8.56%. Its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #12 of 21 subsectors and has moved up 1 slot over the past week.
Indicative Stocks
STAA
STAAR Surgical Compa
PRCT
PROCEPT BioRobotics
HAE
Haemonetics Corporat
* * * *
Top Movers
Gainers
CRL
+18.68%
ROK
+11.9%
DIS
+10.76%
GEN
+8.24%
CDW
+7.07%
Losers
GOOG
-7.51%
GOOGL
-7.26%
IFF
-7.08%
DASH
-6.9%
DAY
-6.44%
* * * *
Earnings Report
Earnings Surprises
UBER Uber Technologies, Inc.
Q1
$1.06
Beat by $0.37
FNF Fidelity National Financial, Inc.
Q1
$0.78
Missed by $-0.33
CTVA Corteva, Inc.
Q1
$1.13
Beat by $0.25
DIS The Walt Disney Company
Q2
$1.45
Beat by $0.24
ROK Rockwell Automation, Inc.
Q2
$2.45
Beat by $0.33
* * * *
You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here.
You're receiving this e-mail at diansastroxz.forex@blogger.com.
For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized financial advice.
Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors.
Chaikin Analytics forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Chaikin Analytics, LLC (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation.
This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.
Post a Comment
Post a Comment