Latest / Financial Survival Network / AI Taking Over Jobs in The Financial Industry -Stock Market Trends & Bubbles - Chris Markowski #6019

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AI Taking Over Jobs in The Financial Industry -Stock Market Trends & Bubbles - Chris Markowski #6019 · Financial Survival Network

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  Every single person out there, they would come up with these algorithms and whatnot.
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  Now we have them, you know, running all of Wall Street.
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  And it couldn't determine that that lift report was wrong a couple of weeks ago
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  and set the shares of the stock up sixty percent on a TYPEO. You
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  are listening to Carrie Let's's Financial Survival Network, where you get valuable information.
• 0:20
  You just can't find anywhere else to thrive in today's trying times. You need
• 0:25
  the Financial Survival Network now more than ever. Go to Financial Survivalnetwork dot com
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  and get your free newsletter and gift. Financial Survival Network now more than ever,
• 0:42
  and welcome. You are listening to and watching the Financial Survival Network.
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  Hey, I've got Chris Markowski on with us. You find him at Watchdog
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  on Wallstreet dot com. Chris been doing your show for better than twenty years.
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  And hey, no one knows the games that Wall Street plays better than
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  you. Chris. What my question for you right now? We talked about
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  this a little bit pre call. You know, Wall Street likes the flavor
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  of the month. You know, Wall Street is like Baskin Robbins, you
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  know, fifty seven flavors, whatever, but AI right now is the flavor
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  of the month. Maybe it's the flavor of the year, maybe it's the
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  flavor of the decade. Chris, we haven't seen stocks like this really since
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  the dot com bubble. But here we actually have companies that have a distinct
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  difference. They actually make money. Is it a bubble or is it a
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  super growth market? Is Tesla a bubble stock? Or is Tesla a growth
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  stock? Now obviously there's a bit of both here, isn't there? Yeah,
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  if are you're talking about bubbles? And then I was actually looking into
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  this, it was like a week or two ago with you know bubbles,
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  going back, you know, to the tulip bubble, and it's like,
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  well, you got you got different type. You got bubblegum bubbles, and
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  you've got you know, bubbles that you had when were blowing your kids.
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  They're they're they're all different. And you know, this one, without a
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  doubt is when a lot of people are making comparisons to the dot com uh
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  bubble. But the issue the dot com bubble was just that it was so
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  much cheap money at the time that was in essence flowing into companies that if
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  you took a look at the prospectus. You could almost set at date when
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  they're you know, they were going to run out of money. It was
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  a burn rate, it was it was funny you could calculate when these companies
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  we're going to go out of business based upon their model. We're talking about
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  companies now that you can say that the you know, take a look at
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  the valuation and what they're valued at a certain period of time, can say
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  they're more expensive, uh, based upon history. But they're not. They're
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  not raising more money. They're they're actually buying back stock, meaning from the
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  art in many respects. You know, why would they be doing that if
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  you know, if it was a bubble uh type of situation and not to
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  mention the order flow is just it's incredible. I mean, you got to
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  take a look at, you know, what type of business these companies are
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  going to be doing moving forward. And you know when people they talk about
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  AI and everybody automatically thinks of being Nvidia and Google and various different things.
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  I you know, like people to kind of run their outlook and try to
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  look at the companies that are going to benefit from this technology that are saying
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  to them myselfs okay, how am I going to be more productive? Or
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  you know, my state is raising minimum weights to some ridiculous number where I
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  can't stay in business, or it's going to make it difficult for me to
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  be profitable. How can I use this to be more productive? And that's
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  what it is, you know, AI. You got to look at it
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  as a tool, you know, much like again when the Internet first came
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  out, and you know, the brilliant Paul Krugman thought it wouldn't much be
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  anything about it. He said that at that point in time, but it
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  ended up being an incredible tool that we all use and it's embedded into our
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  lives. And you know, as Warren Buffett actually talked about this, you
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  know, there's some things you know that he had, you know, throughout
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  his life. Remember when it television first came out. You know, he
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  didn't have one in his house and he never understood why anybody would ever want
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  one, or we would never imagine having one. The same thing with the
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  personal computer. That that changes. You know, things are invented that you
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  don't think you may need or want to have, or whatever it may be,
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  and then you find out all of a sudden, Hey, you know
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  what I got to get that. It's so true what you're saying there and
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  AI, it's going to be more profound than probably anything else, especially if
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  they start. The largest job category in the United States is driver. Over
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  ten million people are driving, and if they could really come up with the
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  fully autonomous vehicle which look Tesla's hitting some roadblocks. Now their stock has gotten
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  slammed as a result, but overall their AI for driving is pretty darn good.
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  You know, no one would believe ten years ago that a car could
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  do what their car is doing. But ten million people who are like no
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  longer having a job. That's a little worrisome, isn't it. Uh yeah,
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  well again, and this has happened throughout history as well as you know,
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  new technologies you know come in and you know, certain ones go by
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  the wayside. It's not doesn't happen overnight, you know. I think a
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  great example of this is, you know, I remember Obama money. It
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  was he was being naive and he was talking about ATM machines and bank to
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  I don't have that many bank tellers anymore. Actually, you know, banks
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  hired more people after they got rid of the tellers. They went and did
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  other types of things within you know, that business and more jobs than to
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  be created, even though certain ones were eliminated. It goes you know,
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  the old Joseph Schumpeter creative destruction also happens with with the labor force as well.
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  Yeah, it's true, but this kind of goes further than anything else
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  we've ever encountered though, right. I remember in college the professor said,
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  you know, the first Industrial Revolution, you know, basically helped the man's
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  hands, you know, did it did away with the need for his body
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  and a lot of professions. Yeah, right, And they were saying the
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  Second Industrial Revolution going to do away with his buy That never really happened.
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  But now it's really looking like this thing. Obviously it's here to stay,
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  there's no question about that. But it goes further than anything else that we've
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  ever ever encountered, right I think. So, I mean you talked about
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  with the cars, the autonomous driving. I don't know, maybe I'm you
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  know, I'm a scaredy cat. I I can't see myself ever getting,
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  you know, into a car that I didn't have some sort of control over.
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  And I you know, I've talked about this people. I say,
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  the only way I see that eventually working is that every car has to be
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  autonomous, so they're all communicating with one another. So yeah, I teach
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  my kids to drive, and I say, you see that person over there.
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  I know that that person can't see me behind that corner. How does
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  you know? How does the AI ever pick up on that or that car?
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  You know, there's I guess it could eventually. I just think that
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  that's going to be a long, a long way to come. And I
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  think people like, you know, like having some sort of sense of control
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  with with with things like that. But you know, and in certain you
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  know, type tasks that one might describe, you know, even though that
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  there's a thought process involved, might be more menial based. I mean,
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  I think back to when I, you know, started in this business,
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  you know, thirty years ago, and you know what was involved in running
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  you know, my business, and the sales assistants and the tickets and this
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  and then that and all that stuff went away, and you know, life
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  moves on, and you know, I press a couple, but everything's in
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  front of me now. I don't have a book of business that was written
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  in interview with ink on holding pictures or anything like that anymore. And you
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  know, I don't need as many people to handle all that. Again,
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  things are going to change, and I do think again other jobs will be
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  creating interesting thing. My friend got to start on Wall Street before they had
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  calculators and is his job was using an adding machine to calculate a crude interest
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  on bond sales and purchases. And he was a mathematical genius, so he
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  could do it literally in his head. But most of the process was proofing
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  what your prior work, to make sure you didn't screw up because one yeah,
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  well point could really mess things up. And now basically those streets around
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  Wall Street, you know, broadened Wall we're all back office operations. There
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  is no back office album right exists. It's empty still to this, I
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  mean, going back to the nineteen nine, it has started clearing out a
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  lot, most of those buildings down and they are empty. But yeah,
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  to think about other sense too. So you had a mathematical genius that was
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  waging his talent, you know, calculating interest. He could have been doing
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  something much much better with his time, quite frightly than doing that. Hey,
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  it's so now though, Look, AI definitely can underwrite mortgages better than
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  any human being right, and it can use more data. Right now,
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  you disclose all your info and then they run a credit report and they do
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  a public record search. It can go way more in depth than that,
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  come up with new models likelihood of default, and really really up the quality
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  of the loans being written. Yeah, what about analysts in your business?
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  Right? Do you see the day when the AI just takes over for them?
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  I don't mean it depends on the type of analytical work, you know.
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  I remember he said, it's like doing going back to the old days
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  when I met the lead retail anaists from Goldman and Sachs back in the nineteen
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  nineties, and this idiot ever stepped from the Walmart and and you know what
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  I mean, good is this person? You know, what does he knows
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  and understand? You know some of things. I do think that you have
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  as much technology as you want trying to make heads or tails and how the
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  economy is going to work and the trillions of transactions that take place every day.
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  It's like trying to understand, you know, where leaves are going to
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  fall off the trees in the fall. You know, it's very very difficult.
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  And it's like I said, it's garbage in, garbage out as well
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  with this, And you know, I'm kind of old school when it comes
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  to my you know, investment of philosophy and in regards of having to go
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  about looking at companies. Will this thing be able to determine what people's tastes
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  are going to be or what's going to happen? And as just that don't
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  know, I don't know. Sometimes just sometimes you can get information paralysis too,
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  where you get you know, too much that overloads and how do you
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  adjust for that? And you know, that's a little bit intuition and experience
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  as well and learning from mistakes. And again I don't know where that's that's
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  going to go. I really don't. But again I don't I every single
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  person out there, they would come up with these algorithms and whatnot. Now
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  we have them, you know, running all of Wall Street. And it
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  couldn't determine that that lift report was wrong a couple of weeks ago and set
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  the shares of the stock up sixty percent on a typo you know, which
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  I find fascinating. I said, you couldn't figure that one out? I
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  mean I learned, I said, come on, and it was just obviously
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  wrong. But the you know, the brilliant salgary that they couldn't figure it
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  out. Hey, well, maybe the best place we could invest in AI
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  is with our replacing our politicians with it. It is. Look, AI
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  isn't going to take a bribe. I don't think I wouldn't know what to
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  do with one if it got it. It can't be dumber than the people
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  who are running things now, right, and presumably it can't be pressured.
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  I guess. I guess it could be like Google with their new AI thing,
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  where it's just as biased against everything. Yeah, and maybe maybe you
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  want some of those ais who are biased against everything there so you get a
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  mix of opinions, right. I mean, hey, I live in Florida.
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  As far as driving goes Man that that car is going to do a
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  better job than ninety percent of the people here on the road. Chris,
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  Oh yeah, I mean, like I said, I'm moving back to Florida
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  and in this fall, so I'm looking forward to that as well. And
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  I'm familiar. You got even again, you know, is you know,
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  will the AI be able to determine? You know, I was taught back
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  and drivers said when I was in high school, seventh grade that if you
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  see somebody that has launched over the wheel like that and wearing a hat,
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  you want to you know, pass them, give them room. They My
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  friend the pilot for forty five years for a major airline, and you know,
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  we're driving in my tesla and he goes, I would never trust that
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  thing, you know, to drive. And he said, yeah, well,
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  but you're up in the sky there and you're using the autopilot. He
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  said, yeah, but we have rules up there. We don't have any
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  rules down on the earth here at ground level. It's so true, you
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  know, so, but potential to profit here is vast. You know.
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  I was just I was just in Thailand and I stopped off in the airport
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  in Singapore and it was like five in the morning, when usually you have
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  a cleaning crew out there. They had a robot cleaning the floors. And
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  I got to Thailand in Bangkok and they had a robot cleaning the floors.
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  So that's just one example of a job that probably you know, I mean,
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  we've had the vacuum robots, the I robot and all that for years,
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  but now actually commercial application and that place, Chris was spotless, you
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  know, Singapore. Yeah, well, I's looked again, and you know
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  they're gonna they're gonna beat the hell out if you can drop a piece of
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  gum autographics. Yeah, don't. You're not deal with JFK, which is
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  oh my god, it's like a national embarrassment when you're flying it. Crack
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  that cut. Oh man, Well, well, wax slowly, but surely
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  they're improving. The Delta's new terminal open LaGuardia got replaced in other is better,
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  but ja's got a long way to go. Yeah, well the terminal
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  four is good, Terminal four is okay, and terminal five is okay.
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  So but yeah, I know what you're saying. That's and it's such a
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  zoo but hey, maybe people won't need to travel as much because you'll just
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  get into the metaverse and it'll be like being there right now. It will
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  never be like me, o there, No, I'm I was booking my
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  grease strip everywhere. I'm there every August, so I'm there. So.
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  So to investors getting more a more serious note, what do you think the
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  biggest challenge moving forward for investors? Is it inflation? Is it geopolitical instability?
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  Is it our own political instability? In the United States? Is it.
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  It's a kind of degradation of the morals and values. What do you
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  think the biggest challenge to investors really is out there, Chris, Investors are
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  always the biggest challenge that is used to themselves. And you know, making
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  you know, getting you know, nuts with fomo with certain things at certain
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  points in time, and not being disciplined with strategy. You know, things
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  are going to are going to come and they're going to go. I think
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  inflation is a problem for everyone, and I quite frankly, I don't think
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  it's it's really going anywhere. And you know, you take a look moving
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  forward. You know, you look at our national debt, you know,
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  close to thirty four trillion dollars at this point in time, where we were
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  adding about a trillion dollars every one hundred days. That's that's a real issue
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  forward. I mean, Talent even talked about that. He called it's even
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  a black swan. It's a whank swan. It's as plain as day.
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  And we're doing this to our kids and our grandkids. And you know,
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  we've got the two leading presidential candidates right now that don't want to address the
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  issue. They don't want to talk about the issues. They don't want to
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  talk about entitlements or any of these things. Are pretending like the problem is
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  not there. You know, if you're not aware of this. I mean
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  I wrote about, you know, the Social Security and the Ponzi scheme that
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  it is back in then it nineties, and this is all coming home to
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  roost. It wasn't dealt with. I mean, the last time we tried
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  to deal with it was under George W. Bush. It was actually the
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  good policy decision in his administration. It got shot down because he spent all
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  his political capital in Iraq. And McConnell says, I can't get this through
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  because we're wasting you know, the essence, we're wasting money over there and
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  we're busy fighting this stupid war. So you know, again, these are
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  real problems moving forward and nobody wants to really deal with them at this point
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  in time. Well, maybe the AI will figure it out, Chris,
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  figuring that one out. You put the AI in charge of all governments spending.
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  Okay, just put it in charge, because can't do any worse than
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  the guys who are doing it now. Yeah, I need Brandon Paul or
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  somebody, you know, somebody that actually makes some sort of sense and understanding
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  of you know, the problems and how they exist. El budget. So
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  social Security is going to go bust. Maybe we need to be investing in
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  the dog food manufacturers right because they're not going to be Seniors won't be able,
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  we won't be able to afford food. We'll have to go for dog
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  food right today's day and age the dog food. I mean, it's like
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  gourmet. People like their dogs, like their dogs more than they do people.
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  Is that from you know, Gordon Gecko from Wall Street, But he
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  said the thing about wasps love animals hate people a limiting. Yeah, that's
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  great. Well, Hey, appreciate you coming on, and it's always fun
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  talking with you. I know you always do have your your hand on the
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  pulse or your finger on the pulse. You find Chris at Watchdog on Wallsbreed
• 18:17
  dot com, and don't forget his radio show and podcast. We have a
• 18:22
  link to it in the show. That's this interview on Financial Survival Network dot
• 18:26
  com. Make sure you sign up for your free newsletter. Chris really got
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  a pleasure and we will talk to you again soon. Thanks a lot.
• 18:33
  I appreciate you have a good one. Thanks for listening to Carrie Letz's Financial
• 18:37
  Survival Network your solution to today's trying times. For the latest, go to
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  Financial Survivalnetwork dot com. Financial Survival Network now more than ever,