Artificial Intelligence has cracked the stock market

ICYMI – Researchers at the University of Chicago Booth School of Business provided standardized and
anonymous financial statements to GPT4 and instructed the model to analyze them to
determine the direction of future earnings.

The results? In brief:

• Even without any narrative or industry specific information, the LLM outperforms financial analysts in its ability to predict
  earnings changes.
• The LLM exhibits a relative advantage over human analysts in situations when the analysts tend to struggle.
• we find that the LLM generates useful narrative insights about a company’s future
  performance
• Lastly, our trading strategies based on GPT’s predictions yield a higher
  Sharpe ratio and alphas than strategies based on other models.

Bolding is mine.

Here is the link to cut and paste into GPT for a summary for the details:

• Financial Statement Analysis with
  Large Language Models

“Blue Horseshoe loves Anacott Steel.”

This article was written by Eamonn Sheridan at www.forexlive.com.