Alejandro Lopez-Lira, a finance professor at the University of Florida, showed that ChatGPT, an artificial intelligence program that parses news headlines, is able to Predict Stock Movements better than random. His experiment showed that the program is able to correctly reason that good news is good for a stock's future, and that hedge funds have reached out to him to learn more about his research. It is likely that as more people use ChatGPT-style technology, the market will become more efficient, and return predictability will decline.
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