Automation and AI – Humans Need not Apply: Thoughts of Saltydog Investor
‘It was never my thinking that made me big money. It was always my sitting doing nothing. Got that, my sitting tight.’ (Jesse Livermore)
Those of you that have subscribed to Saltydog for some time will be well aware that Jesse Livermore is one of our heroes. He was a momentum investor who became very wealthy in the early part of the twentieth century during the Great Depression.
Fortunately there was a really good book ‘Reminiscences of a Stock Operator’ written at the time by Edwin Lefèvre, which recorded the thoughts and tactics of Livermore. This is a good read for any serious D.I.Y. investor.
Today, with about a month to go before the result of the up and coming General Election, it is very difficult to make a judgement as to what is likely to be the result.
Logic says that a Conservative majority will see the under-rated UK stock market and Sterling strengthen, any other result will see the reverse.
‘a Conservative majority will see the under-rated UK stock market and Sterling strengthen’
Now, as investors this does not mean the end of the world, it just means positioning your portfolio, holding sufficient cash, and sitting tight to take advantage of whichever way the result goes.
I do endeavour to do this with my own portfolios, but find it difficult.
Thirty years in the manufacturing industry, and using the Japanese Kaizen philosophy of continuous improvement (taking small steps quickly), means that I am conditioned to always be looking to improve my position.
Hopefully in times like today, I will be able to put a ‘Livermore’ brake on.
Recently I have been moving one step at a time into funds in the UK sectors – these being the sectors which have been demonstrating an upward momentum. I will now sit tight until the result is declared or starts to become obvious.
Last week I was asked by a new subscriber as to why Richard recommended funds that he was unable to acquire. I assured him that it was not a deliberate tactic.
The Saltydog algorithm researches most of the funds that are available in the UK, and then puts them into our presentation package.
‘not the end of the world to use an alternative fund, as long as it was in the same sector’
Unfortunately, the many trading platforms that we all have to use to make a trade, do not have every fund available. The quantity of funds varies from platform to platform as do the costs of trading.
I explained to him that it was not the end of the world to use an alternative fund, as long as it was in the same sector. I, due to a fault of history and pension providers, have ended up using four different platforms to control my own investments.
This has meant that on occasions I am not using the fund suggested by Richard, but for certain the one I do use will be in the same sector. This is not an exact science.
I acknowledge that I am a ‘techno-nut’ drawn to articles that suggest the future world will be run by self-taught robots that are ‘high’ on quantum computing.
The suggestion would seem to be that when this comes to fruition, we will not need nearly so many lawyers, accountants, teachers, and doctors, and by then manual work will of course already have been eliminated.
This is forecast to be arriving within thirty years. This will indeed be a ‘Brave New World’ for our politicians to contend with!
For those of you that want to be as alarmed as I am, you should join the 12m viewers that have already watched ‘Humans need not apply’ on YouTube. It is really rather well presented – see it below.
Best wishes and good investing,
Founder & Chairman