The advent of GPT-4 and its advanced forecasting capabilities might seem like a boon for stock investors, but paradoxically, it could make investing even tougher. While GPT-4 can generate predictions that rival or even surpass those of human analysts, this improvement in forecasting doesn't necessarily translate to easier gains for the average investor. The stock market is already dominated by high-frequency trading algorithms designed for rapid transactions, and the incremental improvements brought by GPT-4 are unlikely to be a game-changer in this already highly competitive environment.
Moreover, if GPT-4 is only slightly better than the average human analyst, imagine the prowess of a purpose-trained investing neural network. Such a system would be "hilariously better," as one commenter put it, but the benefits would likely be confined to those who can afford to develop or access these advanced tools. This creates a scenario where the rich get richer, leveraging cutting-edge AI to maximize their returns, while the average investor struggles to keep up.
For those who rely on more traditional or community-driven advice, such as the tips from WallStreetBets or the simplicity of "VOO and chill," the landscape might become even more challenging. The gap between professional, AI-enhanced trading strategies and individual investors' approaches could widen, making it harder for the latter to achieve comparable returns.
In essence, while GPT-4 and similar technologies promise to revolutionize stock market forecasting, they also risk exacerbating existing inequalities in investment success. The real winners will be those with the resources to harness these advanced tools, leaving the average investor to navigate an increasingly complex and competitive market.
