Artificial intelligence and data analysis, despite their numerous benefits, can lead to the creation of noise and ambiguities in financial markets. Many investors, banks, and investment firms utilize these tools to enhance their analyses. However, it is crucial to note that in some cases, these analyses can increase ambiguities and create noise in market data.

For instance, when a new company or emerging technology enters the market, artificial intelligence analyses may produce different results, leading to market confusion. Additionally, an excessive reliance on these tools can result in repeating errors made by renowned investors such as Sir Isaac Newton in the past.

(Sir Isaac Newton lost a significant fortune due to speculation in the South Sea Company and a failure to adhere to vital principles.)

✅ If you do not comprehend the subject, it is better to engage in a different task or gain a complete understanding of the topic first. This holds even if there is significant interest in the subject!

In conclusion, I recommend exercising caution when using these tools and always refraining from making decisions solely based on a single analysis.

Linkedin: Sohrab Eskandari