A finance professor tested AI vs. the pros. AI beat them. Also: an $8K Marketplace flip and how scammers stole $2M in gold with a phone call. And, get this, the FAA still runs on Windows 95 and floppy disks. Yikes.
When your stock is actually a scam
ChatGPT
I don’t mean to be a downer, but I need to warn you that tens of thousands of Americans, folks just like you, are getting duped into buying worthless Chinese stocks.
The Wall Street Journal (paywall link) found even seasoned investors are falling for this scam, losing big bucks in the blink of an eye.
How the scam goes down
Fraudsters hype obscure Chinese companies using flashy but totally fake online marketing. We’re talking bogus financial reports, glowing endorsements from so-called “experts,” and completely made-up news stories claiming revolutionary breakthroughs.
It’s like the Netflix Original version of Wall Street. Investors think they’ve discovered the next Tesla or Amazon. Fraudsters generate online buzz like it’s a Marvel premiere.
You’ll see anonymous Reddit accounts praising a “groundbreaking diagnostic technology” that cured their dog’s cousin’s gluten allergy. Influencers squeeze out TikToks looking like TED Talks, promising, “You’ll 10X in 3 days or I’ll eat this protein bar on camera.”
Then the scammers quietly cash out, the stocks crash, and everyday people are left holding worthless paper.
- Mike from Texas dropped over $40,000 after he followed advice from an online forum screaming success about a so-called groundbreaking Chinese biotech company.
- Emily, a teacher from Florida, poured her entire retirement savings into a Chinese company promoted by a convincing finance influencer. Turns out, the company didn’t even exist. Her retirement vanished almost overnight.
- Jim from Illinois? Fell for sleek emails teasing “exclusive tips.” The only thing exclusive about it was how fast his kids’ college fund evaporated chasing a Chinese electric vehicle startup that disappeared overnight.
So, what do you do?
Be smarter. Please.
- Steer clear of “secret tips”: If someone promises huge returns on a secret investment, walk away. It’s all smoke and mirrors.
- Do your homework with trusted sources: Cross-check on Bloomberg, Yahoo Finance or the SEC. Can’t find details? Run. If you’re sourcing from a comment section, stop.
- Watch out for social media buzz: Hype on Reddit, Twitter and Discord is a huge red flag. Influencer-driven frenzy rarely points to solid investments.
Don’t let scammers ride off into the sunset with your life savings while you’re left in an empty Reddit asking, “Wait, did anyone else lose everything?”
The bots are coming for your 401(k)
ChatGPT
One question I get all the time is, “Kim, can AI help me pick stocks?”
Spoiler: Not only can it help, it might do a better job than a guy in a Patagonia vest yelling about yield curves.
📈 Stocks meet small talk: Google Finance is getting an AI brain transplant. Starting in the coming weeks, you can ask it detailed market questions, get fancy charts, track commodities and crypto and see live news in one place. “AI, why is my portfolio crying?” — now answerable. Maybe even in a Shakespearean tragedy voice.
$2 loss
For every $1 put toward sports betting. As federal and state guidelines have loosened, fewer Americans are investing in stocks and other safer assets. This past January, folks put $14 billion into online sports betting — compare that to $1.1 billion in January 2019.
💰 Meanwhile, retirement changes: Trump’s planning an executive order to let 401(k)s tap into crypto, gold, private equity and other alt assets. Long locked in stocks and bonds, opening up the $9T retirement market could be a windfall for digital assets and a whole new playbook for savers. If this passes, your financial adviser might start wearing Yeezys.
Chinese pump and dump stocks: Scammers are sliding into DMs and WhatsApp chats, posing as financial advisers. They’ll hype up shares in small Chinese companies listed on the Nasdaq that look promising. The twist? Insiders are manipulating the price. Once you buy in, they cash out, and you lose thousands (paywall link).
🔥 Nasdaq’s tech doubt: After an epic run, Goldman Sachs says the tech melt-up may be … uh, melting. Their traders flag a slowdown in “leadership” stocks like Netflix and Meta, plus some choppy “under the hood” signals like volatility sinking too low (yes, that’s apparently bad). Big winners are taking a breather, and the vibes are getting nervous.
📈 Teens are using ChatGPT for stocks: They’re running prompts to see where their money could land in a few years if they invest now. Take 15-year-old Ryan, up $6,000 after throwing his $800 paychecks into Bitcoin and MicroStrategy. Ambitious? Sure. Kids these days are skipping lawn mowing hustles and going straight to leveraged ETFs.
💸 Thinking about meme coins? The SEC says they don’t count as securities under U.S. law. Why? Securities (like stocks) usually offer profits or rights to a company’s assets. Meme coins? They don’t pay out earnings or give ownership. They’re more like collectibles with little real-world use. So don’t fall for them.