ChatGPT Could Trigger Roaring Twenties for Stocks, Solidifying a Bull Market

• 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 the stock market, cementing the recent rally as a new bullish regime.

Yardeni said in a note on Thursday that he sees the rally in stocks since the mid-October lows as a new bull market, not a bear market rally, as the S&P 500 recently tested the all-important 4,200 resistance, He stressed that the stock had beaten in February. 2 The closing high was 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 is all about the idea that generative artificial intelligence, through the use of chatbots like ChatGPT, could trigger a productivity spike and improve living standards across the economy. If that happens, it could allay many worries in the minds of investors, including recessions, banking crises and the possibility of a debt ceiling crisis.

“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 is not alone in seeing 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. “Generative AI can streamline business workflows, automate routine tasks, and spawn a new generation of business applications,” said Goldman Sachs.