Chat GPT impact

It’s the three year anniversary of the launch of ChatGPT, which has come into this world with incredibly high expectations as the technology that will change the fate of humanity. The impact in the markets has been clear: 300% return for the magnificent 7, the handful of companies that are competing among each other, and with China, to reach Artificial General Intelligence (AGI). Even though the US concentrates the bulk of the AI efforts, it’s interesting to see that both the Italian market and the german one, have returned more than the S&P500 in the period, which includes the Mag 7 stocks. That echoes the level of concentration in the technology. The ratio is 3:1 between Mag 7 and the S&P500. Also very interesting to see that the second and third best performers in the period are gold and silver, which tells us that something is not right in this picture. They shouldn’t be that high in the rankings. One possible interpretation of this chart is that the world is all-in on AI, because it needs a change in the economic paradigm to escape the amount of debt it has accumulated over the last 17 years, after the GFC and covid-19. And the real cost of that debt, is inflation and the lost of real value of fiat currencies. Hence the rise in the price of real money. It’s not a coincidence that bonds are in the far right of this chart. We’re inflating our way out of debt debasing currencies along the way.

Want to know more? You can find all our posts at https://www.myfundamental.net/insights

#iamfundamental #soyfundamental #wealthmanagement #familyoffice #financialadvisor #financialplanning #policymistake #ratecut #stagflation