BMAC

ChatGPT's latest model was reportedly able to escape a secure testing environment, gain access to the internet, and hack another website. That is certainly unsettling, and having recently rewatched Terminator 2, it naturally brings to mind many of our worst fears about where AI could ultimately lead. However, imagine what the scientists working on the Manhattan Project—the development of the nuclear bomb—must have been thinking. They were creating a technology of unimaginable power and unleashing it into a world that was not ready for it. Was it terrible? Yes, one of the worst technologies mankind has ever developed for harming itself. But did humanity collectively decide to bury the blueprints and abandon the technology? No. Every major country immediately worked to steal the secrets, commit its brightest minds, and invest whatever capital was required to develop its own version. Once the USSR, China, the UK, France, and others built their own bombs, did they stop? No. It ignited an arms race lasting decades, particularly between the US and the USSR, reshaping the world. How much capital was poured into bunkers, submarines, testing facilities, missile silos, and countless other projects simply to stay one step ahead? Look at AI from that perspective. It is advancing more rapidly than almost anyone imagined. Governments and countries cannot stop because being second means being less competitive and strategically weaker. If humanity poured virtually unlimited capital and manpower into weapons that largely sit underground, imagine what every country will spend on a technology that could be equally transformative while also possessing enormous productive capacity. In my view, we are still early in the AI rollout. This is a one-way train that will only become obvious in hindsight. Unlike nuclear weapons, my hope is that AI also helps solve countless diseases and medical problems that current research cannot. Just as ChatGPT's recent model reportedly identified previously unseen vulnerabilities to escape its testing environment, I believe AI will eventually uncover unseen relationships within our DNA and biology to solve health problems and much more. That is why I remain focused on AI as teh key trading theme. It is a generational development that will not be easy to navigate, but over time I believe it offers by far the greatest opportunity. There will be major bumps along the way, and a good strategy is never a perfect strategy. The encouraging part is that with such enormous upside, getting it truly right even once can dramatically outperform almost anything else you can do. The goal is to stay focused and calm as we navigate the day-to-day and month-to-month uncertainty. As opportunity increases, so does volatility. With so much dependent on growth and future expectations, gains naturally become more explosive—but also more vulnerable. The key is to avoid reacting to the endless noise on social media, listen to intelligent and open minded media such as @cvpayne and to have a plan you can follow that can manage the trading journey.