- According to market veteran Ed Yardeni, the rise of ChatGPT could set off a Roaring Twenties for the stock market.
- Yardeni emphasized that artificial intelligence can improve productivity and living standards.
- “That way, the Fed can spend a lot less time obsessing over what to do next,” Yardeni said.
According to market veteran Ed Yardeni, the rise of ChatGPT could usher in the Roaring Twenties for stock markets, cementing the recent rally as a new bullish regime.
Yardeni said: thursday notes He said he sees the rally in stocks since the mid-October lows as a new bull market, not a bear market rally, noting that the S&P 500 recently tested the all-important resistance level of 4,200, and on Feb. He emphasized that it surpassed the closing high of 4,179.
“Markets have overcome a wall of uncertainty thanks to Wall Street worriers who predicted that the banking crisis and debt ceiling crisis could exacerbate the widely anticipated imminent recession,” Yardeni said. said.
Yardeni argued with all his might that Chatbots like ChatGPT, could trigger a surge in productivity and improve living standards across the economy. That could raise a number of concerns in investors’ minds, including recessions and banking crises. potential debt ceiling crisis, It may melt.
“This could be the event that kicks off the Roaring 2020s, where the Fed will have much less time to obsess over what to do next, and how technology will improve productivity and living standards across the economy. We can focus on what we’re pushing forward,” Yardeni said. He said.
Yardeni isn’t the only one who sees generative AI as having a positive impact on economic growth. Billionaire investor Paul Tudor Jones recently told CNBC that AI will bring about the same productivity boom that personal computers and the Internet did in the 1980s and 1990s, respectively.
“I think there will certainly be the introduction of large-scale language models. [and] Artificial intelligence will create productivity booms we’ve only seen a few times in the last 75 years,” Jones said, adding that the stock market could eventually see an average annual gain of 15%. added.
Goldman Sachs is also bullish on the impact of AI on the economy, arguing in a recent memo that AI could lead to a staggering 7% boost to global GDP. Goldman Sachs said, “Generative AI can streamline business workflows, automate routine tasks, and spawn a new generation of business applications.”