Ever since ChatGPT put AI on the radar of millions of people, I’ve had people ask me what it means for investors.

Is artificial intelligence good or bad?

Should I be scared of AI?

I know a lot of people are scared of AI. They immediately go to the scary Hollywood version of AI: The Terminator. The Matrix. HAL, from 2001: A Space Odyssey.

In the minds of a lot of people, AI is something that will “turn” on us violently… or at least take our jobs. So, they have no interest in applying it to their investment strategy.

I feel sorry for these people. I worry they are destined to lose big money to a powerful financial enemy they never see.

Because you know who does use AI?

Do you know who brings massive computational firepower to the battle that is the stock market?

Do you know who employs some of the world’s best data scientists?

Wall Street does.

Wall Street has “weaponized” AI and data science to pick the pockets of regular investors… every day.

If you’re not using AI or some advanced kind of data analytics, you are using Stone Age technology to fight a Space Age war.

You are a caveman with a spear going up against an F-16 fighter.

You have no shot at winning.

Here’s what is happening whether you like it or not…

NASA Has Nothing on the Stock Market

On any given business day, the financial market is flooded with billions of different data points that reflect shifting economic conditions. Many of these data points update every second.

You have stock price moves, currency moves, commodity moves, interest rate moves, earnings reports, and dozens of other variables.

Every time a stock price changes even a little bit, it creates a butterfly effect that changes other asset prices.

All that trading activity generates some of the biggest and most complex data sets on the planet.

A NASA mission has nothing on the financial markets.

Now here’s how being the financial equivalent of a caveman dooms the vast majority of investors and traders…

These folks use the human brain to process and analyze all that data. That’s crazy… and it dooms them to losing.

The human brain is a wonderful thing. It has allowed us to invent incredible things like the printing press and smartphones. It has allowed us to create beautiful music and art.

The human brain is the reason we’re here.

However, when it comes to processing and analyzing millions of data points, the human brain is laughably feeble and ineffective compared to a supercomputer running AI and advanced data analytics.

There’s simply no comparison.

The supercomputer is literally millions of times better at taking in huge amounts of data and making sense of that data.

Despite this, the vast majority of traders enter the financial arena armed with just their brains. They go up against Wall Street, which employs the most advanced data analysis technology on the planet. This result is that the market chews them up and spits them out.

That’s why I’ve been using computer tools to guide my investing ever since the 1970s. That’s when one of my college professors tasked me with creating a computer model that would mimic the S&P 500. His belief was that index investing – putting your money in funds that track indexes like the S&P 500 – was the best way to invest.

Using Wells Fargo’s mainframe computers, I got to work. When I finished the assignment, there was a problem…

My system didn’t just mirror the S&P’s performance – it beat it!

It was the best thing that could have happened to me, and I was hooked.

Why would I settle for merely keeping pace with the market if I could do better?

From then on, I devoted extensive time and resources to testing, refining, and validating my findings. That computerized quant system has grown much more sophisticated through the years – and the computers have thankfully gotten much smaller – but it remains the foundation of my own personal investing and my multidecade career managing money for clients and providing analysis and recommendations to individual investors.

If those massive mainframe computers could beat the market by 3-to-1, just imagine the kind of advantage Wall Street now has with the advancements in AI over the past few years.

It’s a War Zone

I won’t sugarcoat how things work in the financial markets.

It’s not a nice place. It’s a war zone.

When you go into the financial markets, you are going up against the world’s smartest, most ruthless people.

These people have the best training. They have the best technology. They’re armed with the best information… and they often cheat. They are working 24/7 to take your money.

And they’re very good at what they do. That’s why they own $10 million vacation homes in the Hamptons and drive around in Ferraris.

If you hope to compete against those people and win, you need to be armed to the teeth with massive data processing firepower. Your brain simply can’t do that on its own.

Someone who depends on their brain to analyze and select trades isn’t taking a knife to a gunfight… they’re taking a knife to a fight where the other side has laser-guided missiles.

This is where AI and massive data processing firepower comes in.

As I said, part of my career is providing analysis and recommendations to individual investors. I’ve been doing that through my publisher, InvestorPlace, for decades.

As great a publisher as they are, they recently got a lot better. That happened after they partnered with TradeSmith, where they’ve spent more than $19 million and over 11,000 man hours developing market analysis algorithms.

TradeSmith has a staff of 36 people working on developing and maintaining their software and data systems. Their systems run day and night, processing information and spotting major opportunities.

All that work, all that time, and all that expense is devoted to a single goal: leveling the Wall Street playing field…

… Giving their members – and now many of InvestorPlace’s members as well – the data processing firepower they need to crush the markets and beat Wall Street at its own game.

On Thursday, October 12, at 7 p.m. Eastern, I’m hosting a special AI Breakthrough event, where I’ll show folks how their latest “trading superweapon” works and how it can provide you with a huge edge in the markets. Plus, for the first time ever, you can see how I’m combining this New Intelligence with my own approach in order to find the best opportunities.

I hope you put it or something similar to work in your own portfolio. Wall Street certainly is. It’s time you leveled the playing field and started trading with the AI edge.

Click here to try using the New Intelligence yourself… and to reserve your spot to join me on Thursday, October 12, at 7 p.m. Eastern as I unveil my new approach to trading! I’ll be back here tomorrow for a peek at how the New Intelligence works… and how it helps investors and traders build wealth in the long run.

Sincerely,

Louis Navellier

Editor, Market 360