Top 10 Posts from 2023: The 10 Greatest Investors, ChatGPT, and the Active Management Delusion

High 10 Posts from 2023: The ten Best Traders, ChatGPT, and the Energetic Administration Delusion


1. The ten Best US Traders and the Virtues That Made Them

Who’re the best traders of all time? Andrew Mitchell, founding father of Ophir Asset Administration, requested ChatGPT to call the highest 10. The bogus intelligence (AI) responded with its record. Mark J. Higgins, CFA, CFP, was intrigued by each the query and ChatGPT’s response. He’d simply accomplished writing Investing in U.S. Monetary Historical past, and had many legendary traders on his thoughts. Whereas ChatGPT’s record was not horrible, it included 4 individuals who he believes have been undeserving and excluded a number of extra who have been very a lot worthy. So the place did ChatGPT go flawed?

2. ChatGPT and the Way forward for Funding Administration

“So, can we human advisers and analysts stand any likelihood within the post-ChatGPT world?” Larry Cao, CFA, the editor of Handbook of Synthetic Intelligence and Large Knowledge Functions in Investments, asks. “Completely. However authenticity will likely be key. Originality has all the time come at a premium, and that premium will solely enhance within the ChatGPT period. In funding evaluation or portfolio development, if we’re providing little greater than the standard knowledge, then ChatGPT and comparable functions might very nicely take our jobs.”

3. ChatGPT and Generative AI: What They Imply for Funding Professionals

“ChatGPT has launched a brand new period in synthetic intelligence (AI),” Michinori Kanokogi, CFA, and Yoshimasa Satoh, CFA, write. So, what does this imply for funding administration and how will all of the ChatGPT- and large-language-model (LLM)-related developments have an effect on how funding professionals work?

4. A Sea Change: Howard Marks, CFA, on the Finish of Simple Cash

“I’m not saying that rates of interest are going to return up. I simply suppose they’re carried out coming down,” Howard Marks, CFA, informed Marg Franklin, CFA, as quoted by Mark Fortune. “One of many primary tenets of my thesis is that within the subsequent 5 to 10 years, rates of interest won’t be consistently coming down or consistently ultra-low. And if that’s true, I believe we’re in a distinct atmosphere, and that’s a sea change.”

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5. The Energetic Administration Delusion: Respect the Knowledge of the Crowd

That few energetic managers add worth is a conclusion supported by quite a few research going again many years, Mark J. Higgins, CFA, CFP, observes. But many traders nonetheless refuse to imagine that only a few can commonly outperform an affordable index fund. Exterior a small and shrinking group of terribly proficient traders, energetic administration is a waste of time and cash. So, why is the energetic administration delusion so persistent?

6. The Six Phases of Asset Bubbles: The Crypto Crash

Traders can shield themselves from the following bubble by recognizing the trajectory that the majority observe, Mark J. Higgins, CFA, CFP, contends. Utilizing the cryptomania of the 2010s and 2020s as a information, he lays out the trail that the majority bubbles take.

7. ChatGPT: Copilot At the moment, Autopilot Tomorrow?

“Primarily based on what we’ve realized in regards to the new, darkish artwork of immediate engineering, how can quant and elementary analysts apply LLMs like ChatGPT? How efficient a copilot can these applied sciences be?” Dan Philps, PhD, CFA, and Tillman Weyde, PhD, pose and reply these questions.

8. The Predictive Energy of the Yield Curve

“The predictive energy of the yield curve is a broadly accepted causal narrative,” Joshua J. Myers, CFA, explains. “However the historical past exhibits that the causal correlation between lengthy and brief charges is definitely fairly weak.”

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9. Redefining the Retirement Earnings Purpose

David Blanchett, PhD, CFA, CFP, discusses his analysis on perceptions round retirement spending flexibility for the Monetary Analysts Journal and supplies proof that households can alter their spending and that these changes are typically much less disastrous than success charges and different frequent financial-planning-outcomes metrics counsel.

10. ChatGPT: The Origins, the Hype, the Alternative

“What are the LLM alternatives and dangers in funding administration?” Dan Philps, PhD, CFA. and Tillman Weyde, PhD, writes. “To reply that query . . . we are going to introduce tips on how to apply LLMs in funding administration and discover the brand new darkish artwork of ‘immediate engineering.’”

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All posts are the opinion of the creator. As such, they shouldn’t be construed as funding recommendation, nor do the opinions expressed essentially mirror the views of CFA Institute or the creator’s employer.

Picture credit score: ©Getty Photos/ JamesBrey

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