GPT-3 is now Dead
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GM Friends & Investors
GPT-3 is old news.
OpenAI has recently launched its latest AI language model, GPT-4, which boasts superior performance in understanding both text and images compared to its predecessor, GPT-3.5. This new model has impressed reviewers with its advanced capabilities and demonstrated its prowess by scoring in the top 10% of test takers on a simulated bar exam, whereas GPT-3.5 scored in the bottom 10%.
In a couple of years, the tech developed here will revolutionize not only the tech industry but will start to creep its way into finance.
We might not have to wait long as there is already trading algorithms trading in the market written by AI.
Highlights:
🏦Credit Suisse
🍾Dubai Cuts Taxes
🏡Bold Predictions
S&P 500
Despite positive remarks from CEOs regarding travel demand in 2023, airline stocks experienced turbulence on thursday. The industry as a whole was weighed down by a decline in consumer spending and other investor concerns, resulting in a significant decrease in stock prices for several major airlines.
United Airlines (UAL) saw a 6.64% drop, Delta Airlines (DAL) saw a 6.32% drop, Frontier Airlines (ULCC) saw a 7.38% drop, and Southwest Airlines (LUV) saw a 2.62% drop. The middle seat remains empty as investors and consumers alike continue to have reservations about the industry's future prospects.
To add to the turbulence, Virgin Orbit (VORB) announced some concerning news after the market closed yesterday. The company revealed that it will be pausing operations for a week and furloughing a significant portion of its staff as it seeks funding. This announcement further contributed to the negative sentiment surrounding the airline industry.
Economy
Credit Suisse (CS) recently rattled the market, causing bank stocks to come under pressure once again. Shares of Credit Suisse dropped over 20% at one point yesterday after its biggest backer, the Saudi National Bank, announced that it would not be providing any more financial support. However, after European markets closed, the Swiss National Bank offered to provide Credit Suisse with liquidity if necessary.
The recent delay of Credit Suisse's annual report due to "material weakness" in its financial reporting has further exacerbated investor concerns, particularly following the collapse of Silicon Valley Bank. Despite these concerns, the Swiss National Bank has assured that Credit Suisse is well capitalized and does not need help "at this time".
However, BlackRock CEO Larry Fink has warned that he expects more "seizures and shutdowns" to take place in the banking sector, suggesting that the troubles faced by Credit Suisse may not be isolated incidents.
Adding to the unease in the banking industry is Wells Fargo's recent filing for a $9.5 billion mixed shelf offering, which is not a good sign. A mixed shelf offering is essentially a way for a company to pre-register securities for sale at a later date, and typically includes a variety of securities such as common stock, debt securities, and purchase contracts. The net proceeds from Wells Fargo's offering are intended for general corporate purposes.
Around the World
Dubai has abolished its 30% tax on alcohol in a bid to entice more tourists and foreign workers. This move means that tourists will no longer be required to obtain permits or be charged for purchasing alcoholic beverages.
The initiative has been implemented on a trial basis for a year, after which Dubai will evaluate its effectiveness and decide whether to make it a permanent fixture.
Crypto
Unstable-Coins
The weekend witnessed the unsettling downfall of the stablecoin USDC, which is supposed to maintain a fixed value of $1.
However, it plunged to an all-time low of below 87 cents, causing concern among investors.
The coin's parent company, Circle UDC Coin, disclosed that a significant portion of its reserves, amounting to nearly 8% of $40 billion, was tied up in the defunct lender Silicon Valley Bank.
Real Estate
In the aftermath of the Silicon Valley Bank's collapse, market experts anticipate major policy shifts from the Federal Reserve during its next policy meeting.
Armada ETF Portfolio Manager, Al Otero, has made a bold prediction that the Fed will entirely suspend raising the target funds rate at the upcoming March 21st - 22nd meeting in light of recent events, causing a significant impact on the housing market.
Reports over the weekend suggest that the Fed is considering this shift to guard against the risk of contagion.
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