Market Freeze
Market Freeze
3.27 | "A.I. will probably most likely lead to the end of the world, but in the meantime, there'll be great companies." ― Sam Altman
News and Numbers
Markets this Week:
S&P 500 is trading flat
NASDAQ 100 is up 1%
Bitcoin-USD is up 5%
Ethereum-USD is up 15%
Headlines from this Week:
US jury finds realtors liable for inflating commissions, awards $1.78 bln damages.
Elon Musk unveiled ‘Grok AI’, a competitor to OpenAI.
OpenAI unveiled big announcements at their DevDay conference.
Meta is launching paid subscriptions to use Facebook And Instagram ad-free in Europe.
Roblox CEO teases allowing NFTs.
Finance
By Vlad Estoup, B.Comm. (Finance); working in Ethereum cybersecurity
The Season is Coming
As Wall Street aficionados well know, navigating the intricate dance of the stock market requires a keen understanding of various factors that sway market movements. Beyond earnings reports and economic indicators, seasoned investors and analysts often pay close attention to the ebb and flow of seasons, recognizing the subtle, yet significant, impact of seasonality on stock market sentiment.
The changing seasons bring with them distinct patterns of investor behavior and market dynamics. Historically, certain months have earned reputations for heightened volatility, while others are associated with more stable, predictable market conditions. These seasonal trends have become ingrained in market lore and are closely monitored by those seeking to gain a competitive edge.
Spring, often synonymous with renewal and optimism, tends to usher in a positive sentiment in the stock market. Investors, buoyed by the optimism of a fresh start, are more inclined to take on risk, leading to increased trading activity and upward pressure on stock prices. The phenomenon known as the "spring rally" has been observed over the years, with April historically proving to be a particularly favorable month for equities.
Summer, however, introduces a shift in market dynamics. As temperatures rise, trading volumes often experience a dip, creating an environment that can be conducive to increased volatility. The "summer doldrums" are a well-documented phenomenon, characterized by lower liquidity and potentially erratic price movements. Investors, taking advantage of vacations and a slower pace, may adopt a more cautious approach, contributing to the market's subdued summer demeanor.
Come autumn, a season associated with harvest and reflection, market participants often find themselves assessing their portfolios and positioning for the year's end. Historically, September has been a notoriously volatile month, marked by market corrections and increased investor anxiety. The specter of historical crashes, such as the 1929 and 2008 events, looms large in the collective memory, intensifying the scrutiny on market performance during this period.
As winter approaches, investors brace for the year-end phenomena of tax-loss harvesting and portfolio rebalancing. December tends to be a month of heightened activity, driven by the desire to lock in gains and position portfolios for the upcoming year. The so-called "Santa Claus rally" often sees a late-year surge in equities, contributing to a positive close for the market.
Beyond the seasonal patterns themselves, it's crucial to recognize that market sentiment is often influenced by the collective psychology of investors. The anticipation of seasonal trends can become a self-fulfilling prophecy, as market participants adjust their strategies based on historical patterns. This interplay between seasonal expectations and investor behavior adds a layer of complexity to market analysis, requiring a nuanced understanding of both quantitative data and qualitative factors.
In conclusion, while the Wall Street Journal has long been a bastion of financial insight, understanding the intricacies of market sentiment goes beyond the conventional metrics. Seasonality, with its rhythmic influence on investor behavior, plays a significant role in shaping stock market movements. Acknowledging and navigating these seasonal nuances can provide investors with valuable insights as they seek to navigate the ever-evolving landscape of financial markets.
This is not financial advice and you should always do your own research before investing in any securities or cryptocurrencies.
Sci-Tech
By Keyann, Software Engineer in Web3
OpenAI's Latest Dev Day Revelations
Since ChatGPT’s unveiling last year, Artificial Intelligence (AI) has become a cornerstone of technological innovation, significantly disrupting traditional job roles and business operations. This technological upheaval, while unlocking new levels of efficiency and possibilities, has also introduced challenges, particularly in the realm of workforce displacement and the urgent need for skills adaptation.
The rapid advancement of AI technologies has led to an automation wave, impacting various sectors from manufacturing to customer service. This shift has sparked concerns about job security, as AI and machine learning systems become capable of performing tasks that were once the exclusive domain of human workers. The result is a dual-edged sword: while some jobs are at risk, new opportunities are emerging, especially in fields directly or indirectly related to AI, such as data science, AI ethics, and AI-integrated product development.
Amidst these significant changes, OpenAI's latest Dev Day takes on added importance. As a leader in AI research and development, OpenAI's innovations and announcements provide critical insights into the future direction of AI technology and its broader implications. The event not only showcased the latest advancements in AI models and tools but also set the stage for understanding how these developments could shape the future workforce and the global economy.
Key announcements like the introduction of GPT-4 Turbo and new customizable AI models highlight the rapidly evolving nature of AI capabilities. These developments suggest a future where AI's role extends beyond mere automation to becoming a fundamental component of creative, analytical, and decision-making processes. This evolution necessitates a reimagining of job roles and a greater emphasis on skills that complement and leverage AI's capabilities.
Here's a summary of the key highlights:
- Web Browsing Capability for ChatGPT: A significant advancement announced at OpenAI's Dev Day is the integration of web browsing capabilities into ChatGPT. This new feature enables ChatGPT to access and retrieve up-to-date information from the web, significantly expanding its knowledge base and the accuracy of its responses. This enhancement allows ChatGPT to provide more current and contextually relevant information, making it an even more powerful tool for research, information gathering, and decision-making.
- GPT-4 Turbo: A major announcement was the unveiling of GPT-4 Turbo, an improved version of the GPT-4 model. This new iteration boasts a larger context window of 128,000 tokens (about 100,000 words), which is four times the capacity of GPT-4. It also features updated data training up to April 2023, as opposed to GPT-4's September 2021 cutoff. GPT-4 Turbo is available in two versions: one for text analysis and another for understanding both text and images.
- Customizable GPT Versions: OpenAI announced that users could now create their own versions of GPT for various use cases, ranging from fun applications to productivity enhancements. These custom models can be built through prompts without requiring any coding knowledge. Additionally, enterprise customers can make internal-only GPTs using the company's knowledge base.
- GPT Store for User-Created AI Bots: A new GPT Store is planned, where users can publish their custom-built GPTs. Initially, the store will feature creations from verified builders. OpenAI's CEO Sam Altman also discussed the possibility of remunerating creators of popular GPTs.
- New Assistants API: OpenAI introduced a new Assistants API, allowing developers to build their own agent-like experiences. These agents can retrieve external knowledge or call programming functions for specific actions, with applications ranging from coding assistants to AI-powered vacation planners.
- DALL-E 3 API: The text-to-image model DALL-E 3 is now accessible via an API, equipped with built-in moderation tools. This API supports various output formats and resolutions.
- Text-to-Speech (TTS) API: A new text-to-speech API, named Audio API, was launched. It features six preset voices and provides access to two generative AI models. This service is aimed at generating human-quality speech from text.
- Copyright Shield Program: OpenAI introduced the Copyright Shield program, promising to protect businesses using its products from copyright claims. The company will cover legal fees if customers face intellectual property lawsuits against content created by OpenAI's tools.
- Other Announcements: Additional updates included a program allowing companies to build custom models with OpenAI’s researchers' assistance, the removal of the model picker in ChatGPT to simplify usage, the launch of Whisper large v3 (a speech recognition model), and a doubling of the token limit rate for paying GPT-4 customers.
These announcements from OpenAI's Dev Day showcase the company's continued innovation in AI technology, expanding the capabilities and applications of its models to meet various user and developer needs.
Paradigm Shift
By Roman Kuittinen-Dhaoui, CPHR, BBA (Hons)
Celebrating Milestones
I am goal-driven. When I achieve a goal, I quickly move on to the next. However, when I reflect on this practice, I realize that although I enjoy the journey, I should also take the time to smell the roses (i.e., to relax; to take time out of my busy schedule to enjoy or appreciate the beauty of life).
Celebrating milestones is more than just a fleeting moment of festivities; it's a crucial component of recognizing achievements and reinforcing motivation.
Firstly, these moments mark significant progress along a journey, providing a chance to reflect on the effort, growth, and perseverance it took to reach that point. They serve as powerful reminders of what's been accomplished and can inspire confidence for future endeavors. Not pausing to celebrate risks diminishing the significance of the accomplishment and undermines the hard work invested.
Secondly, celebrating milestones fosters a sense of camaraderie and unity within teams. It acknowledges the collective effort that contributed to the success, promoting a positive work culture. When teams come together to celebrate, it strengthens bonds and boosts morale, encouraging a shared sense of achievement. This camaraderie can be a catalyst for continued success, as it builds a supportive environment where individuals feel valued and appreciated.
Thirdly, celebrating milestones provides an opportunity for reflection and learning. Taking time to recognize and analyze what worked, the challenges faced, and the lessons learned along the way is crucial for personal and professional growth. This reflection not only reinforces the significance of the achievement but also offers a chance to refine strategies and approaches for future goals. It's a moment for introspection, learning, and planning for what lies ahead.
Fourthly, these celebrations act as powerful motivators. Acknowledging and commemorating milestones energizes individuals and teams, propelling them forward with renewed vigor. It reinforces the idea that hard work pays off and encourages the pursuit of further objectives. This motivation is essential in maintaining momentum and drive, preventing burnout, and keeping enthusiasm high.
Finally, celebrating milestones contributes to a positive mindset and overall well-being. It’s an opportunity to savor the success. Recognizing achievements can boost confidence and self-esteem, leading to increased satisfaction and happiness. It's not just about work; it's about acknowledging one's efforts and taking a moment to appreciate the journey.
TLDR: Pausing to celebrate milestones isn’t just about a party or acknowledgment. It's a vital part of the journey itself, contributing significantly to individual and collective growth, motivation, and overall well-being.
(Head)Space
By Roman
Financial Literacy: Pension Plans
This week I have been thinking about setting myself up for retirement. There are primarily two types of pension plans: defined contribution and defined benefit.
In a defined contribution pension plan, you know how much you’ll pay into the plan. However, you don’t how much you’ll get when you retire. Usually, you and your employer pay a defined amount into your pension plan each year. For example, you contribute 5% of your salary and your employer contributes 6% of your salary. The money in your defined contribution pension is invested in one or more financial products. The amount you get when you retire depends on how your plan is managed and how the investments perform. Thus, defined contribution plans place the burden of saving and investing for retirement on employees.
In a defined benefit pension plan, your employer promises to pay you a regular income after you retire. Usually both you and your employer contribute to the plan. Your contributions are pooled into a fund. Your employer or a pension plan administrator invests and manages the fund. You don’t have to make any investment choices. The income you get when you retire is usually calculated based on certain elements. That includes your salary and the number of years you contributed to the plan. It's a set amount that doesn’t depend on how well the investments perform. Your amount may be increased to help you cover your living expenses while the rate of inflation increases. For example, you could get $2500 per month from your employer in retirement until you die. Thus, defined benefit plans place the burden of saving and investing for retirement on employers.
Unsurprisingly, a steady trend has emerged of companies favoring defined contribution plans over defined benefit plans.
Now, that I understand the difference between pension plans, I can plan for my future retirement in 25 - 40 years. Ideally, I want a steady flow of income from my employer (i.e., defined benefit) and have my own money saved on the side (e.g., defined contribution plan and RRSP/401k).
Company of the Week
Replit, a cloud-based development environment, is revolutionizing the way we code. Launched in 2016 by Amjad Masad, Faris Masad, and Haya Odeh, Replit simplifies programming by providing instant, ready-to-code IDEs (Integrated Development Environments) in the cloud. Its mission is to make coding accessible to everyone, everywhere, removing traditional barriers like complex setup processes and hardware limitations. Replit supports numerous programming languages and offers collaborative features, allowing coders to work together in real-time. This platform has become especially popular in education, introducing students to coding without the need for sophisticated software installations, thus nurturing the next generation of programmers.
Written by: Vlad Estoup, Keyann Al-Kheder, and Roman Kuittinen-Dhaoui