“The time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.” Would chatGPT provide the same monetary guidance as chair Powell?
With NVIDIA market value over $3 trillion, a single company is worth more than combined value of all financial institutions, including major banks, credit card companies, private equity institutions …… in the United States. Note that the smartest people work for Wall Street, and NVIDIA at most has the second tier of smart workers. Logically, something is wrong with the valuation of the chip company.
Incidentally, some journals invited me to review two research papers on AI recently. I found there included no breakthrough in theory and findings on AI. Many of foundational learning algorithms are familiar to me and I knew them twenty years ago. I think AI today is benefited more from computational technology rather than true understanding of how our brain works. Note that our brains use very weak and small amount of biological energy. For the same work, AI computers have to work very hard behind the scenes and consume lots of energy. As a matter of fact, no AI companies are anywhere near to be profitable.
While we are celebrating the progress of chatGPT and amazed by their remarkable capabilities to write a love letter for us conveniently, we must be carful in putting our money in those companies. We must learn lessons from market overreactions, instances such as dot com in 2000 and housing bubble in 2007.