You can use ChatGPT to get more out of the financial articles you read, giving you a more nuanced understanding of complex economic concepts and making you a more informed investor.
ChatGPT can help you better grasp concepts and terms, dig deeper into new information, think more critically, gain contextual understanding, explore practical applications, and see more clearly how things connect.
Just keep in mind that ChatGPT is best used as a launching pad for your research, not as a final authority on your financial decisions.
Reading smart things about investing is a step in the right direction. But to truly get the most out of what you read, it can help to engage with it on a deeper level. That means digging deeper, thinking critically, and asking good questions. The good news is, you can lean on ChatGPT to do that work.
Use it to help you better grasp important terms and concepts.
When you stumble upon terms or concepts that seem complex, or that you can’t entirely explain, don't gloss over them. For instance, if you're reading about interest rates and aren't clear on the difference between "real" and "nominal" rates, or if you're puzzled by what "quantitative easing" is exactly, pause and ask ChatGPT for a detailed, user-friendly explanation. These clarifications, which can be tailored to your level of understanding, will fill in the gaps as you go along and accelerate your learning curve.
Suggested prompts:
Could you explain in layman's terms, spell out its relevance in this article, and offer real-world examples that highlight its significance in different contexts?
Identify and simplify the top three technical or financial terms in the article, and provide a concrete example for each to showcase its relevance.
Use it to dig deeper.
Graduating from basic understanding to nuanced comprehension can make all the difference, particularly in investments where insights into the “why” and “how” can set you apart. ChatGPT can give you an interactive way to drill down into these complexities.
Suggested prompts:
How exactly does operate? Please explain its mechanisms, in simple language, and offer illustrative examples.
Can you share a case study that illustrates in practice, either validating or challenging the article's stance?
What consensus or debate exists among leading experts concerning this?
What are some lesser-known or second-order effects of that could be crucial for investment decisions?
Let it do some critical thinking for you.
ChatGPT can help you challenge the premises and assumptions in an article, offer alternative viewpoints, and even serve as a digital "devil's advocate." By helping you ask insightful questions and contemplate diverse perspectives, ChatGPT can enrich your critical analysis, enabling a more thorough evaluation of investment articles.
Suggested prompts:
What are the potential flaws or limitations in the arguments presented?
What are some criticisms or counterarguments to the importance or validity of as presented in this article? How strong are these counterarguments?
What kind of evidence is typically used to support or refute?
What are the alternative viewpoints to the ones presented?
Use it to gain contextual understanding.
You’re smart, sure, but even you sometimes read about historical events, influential figures, or specific details that you didn’t know. If an article you’re reading mentions something obscure about the Wall Street Crash of 1929 or keeps referring to Paul Volcker, a quick query to ChatGPT can swiftly bring you up to speed on these pivotal moments or people, giving you some valuable context and enhancing your understanding of their impact on the present situation. Since ChatGPT knows a whole lot about history and almost every existing concept, you can also ask for similarities (for example, when was the last time the Federal Reserve raised rates and didn’t ultimately knock the economy into a recession?).
Suggested prompts:
Could you plainly summarize the key happenings in and explain how they shape what’s happening now?
What groundbreaking work, theories, or individuals have been influential to? Could you expand on their significance?
Can you compare and contrast
with something similar that happened in a different time or place? How might that offer insights into the present day?
Let it help you find your next steps.
Whether you're aiming to find new investment avenues or analyze your existing portfolio, ChatGPT can help you weigh the practical effects of some new information you've consumed. So feel free to ask the chatbot to run some what-if analyses and offer up some investment ideas that you might consider. Just be sure to describe your situation as closely as possible, so the chatbot can tailor its responses to fit your needs, and always scrutinize the ideas it presents. ChatGPT is a good starting point for ideas, but it’s not all-knowing.
Suggested prompts:
What are the broader implications of beyond what's discussed in the article? How might it affect my portfolio, which consists of?
What are some alternative investment strategies that could mitigate the risks outlined in the article? How might they fit into my existing asset allocation of?
Can you help me understand the historical performance of assets similar to those in my portfolio during similar market conditions to what's described in the article?
Gain a better sense of how things connect.
The world of finance and economics is a complex web of interconnected ideas. Grasping how a particular concept links with another can enhance your overall understanding, turning you into a more adaptable and well-informed investor. If the article tackles a specific investment approach, financial tool, or economic theory, consider asking ChatGPT to illuminate associated ideas that could expand your perspective.
Suggested prompts:
How does relate to other concepts in the context of this article? Explain, in conversational language, whether they are complementary or conflicting, and why.
Does have any derivative concepts or sub-concepts that I should know about to fully understand its implications?"
So how do you put all of this into action?
It’d be overwhelming to tackle all of these aspects for every article you engage with, but, let’s be really clear, that’s not the idea. Incorporating just one of these strategies into your reading routine could significantly accelerate your financial literacy.
So think of these points not as an exhaustive checklist, but as a flexible toolkit. Each tool is designed to sharpen a different aspect of your understanding, and you can choose the ones that are most relevant to your current needs. Over time, these DIY improvements will compound, making you a more discerning and informed investor.
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Capital at risk. Our analyst insights are for information purposes only.
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