"It's just not that easy to make money in the markets; it requires discipline." These words resonate with self-directed investors who often find themselves underperforming the indices. The new Steady Wealth Podcast website, available at www.steadywealthpodcast.com, delves into the heart of this issue (and others), addressing the reasons behind individual investor underperformance.
In this episode of The Steady Wealth Podcast, host Serge Berger discusses the topic of artificial intelligence (AI) and its impact on the market.
He begins by emphasizing that risk assets, including AI-related stocks, don't move in a straight line but experience pauses and corrections along the way.
Berger shares his personal experience of using AI and how it has improved operational efficiency and cost savings for his business.
He then discusses the phenomenon of companies mentioning AI in their conference calls, which triggers algorithmic trading and drives up stock prices.
Serge highlights the rapid pace of technological adoption and the potential for volatility in the AI sector.
He cautions investors about the risks and advises them to be cautious and not underestimate market volatility.
Berger also mentions the importance of using indicators like the Relative Strength Index (RSI) to identify overbought and oversold conditions in volatile stocks.
Overall, he acknowledges the transformative power of AI but reminds listeners to approach the market with a realistic understanding of its ups and downs.
