Investing and Investment in April 2023 …
In April 2023, I was again able to consume many exciting articles in newspapers, podcasts or elsewhere in the digital world and think about what impulses for one’s own investment are present in the articles. April was not so bad for investing, as the German leading index DAX40 at least marked a new annual high. Below you will find my insight traffic light for your own finances if you, as a freelancer, solopreneur, small business owner or otherwise, take care of your finances yourself:
Education is the Best Investment
An investment in education always pays off. Although the podcast “How I would invest in real estate today: Christoph Gröner – Part 2” is actually about investing in real estate. However, a side issue was most important to me in relation to my own finances. Especially as a young person, you don’t have to invest in stocks, funds or ETFs at all costs. Many studies show that a good education leads to a higher lifetime income and that working conditions also improve. Accordingly, as a young person, you should first invest in yourself and your education. However, the study “We don’t need no (higher) education – How the gig economy challenges the education-income paradigm” also shows that an investment in education does not always mean an “official” degree, but also informal learning counts. The only thing you can’t do here is give an effective interest rate for this type of investment.
Investing in Individual Stocks is Fun, but Requires a Well-Founded Analysis
A strategy can work out, but it doesn’t have to! Inspired by Lisa’s post, I actually spent this month dealing with fragrances and flavors myself. A really interesting industry! However, you should not invest blindly, but always analyze a stock in a well-founded manner. Because the actual return is often made when buying. So I took a closer look at Symrise AG from the post. Very interesting, but unfortunately I noticed an activity of short sellers at Symrise AG in the Federal Gazette for net short positions. Among other things, the study “Efficiency and the Bear: Short Sales and Markets Around the World” shows the importance of short sales for price changes.
Chat GPT and other AI Have Limits when it Comes to Investing
You shouldn’t just trust AI when it comes to finances, but AI will also play an important role in the context of investing in the future. However, you shouldn’t rely on it alone. On www.businessinsider.de I first came across the study ” Can ChatGPT Forecast Stock Price Movements? Return Predictability and Large Language Models ” became aware. The conclusion of the study states that news in the form of sentiments has long been important to experts. Tools like Bloomberg have long offered sentiment analyses, but the American colleagues have shown that Chat GPT may be better than the existing tools. For me, the topic is red because we are still at the very beginning here and it is therefore not yet a topic for the general public. Blindly following can be dangerous!
This is My Own Research on the Topic …
AI in the financial sector is by no means a new topic. I, too, have dealt with the topic in my own research, including in the paper “Artificial Intelligence in Customer Relationship Management in Universal Banks – A Qualitative Analysis”. In banks and other companies, there are a large number of possible uses for AI, especially when it comes to efficiency in retail banking.
That’s Coming …
April is followed by May, which is always an interesting month on the stock market, as many general meetings take place here … A significant contribution to this from my environment is the dividend study by Christian Röhl. Here you will find a wealth of information on the distribution behavior of German listed companies, which is certainly the focus of many readers in the context of their own investments.
