We are currently drowning in the hype of the AI revolution. Wall Street analysts are convinced that large language models and machine intelligences are going to entirely replace human capital allocation, rendering human intuition obsolete.
But what if the exact opposite is true?
The Wisdom Bite:
"Man and his machine intelligences. Which is a parasite on the other? Neither part of the symbiote can now tell. But it is an evil thing, a work of the Anti-Nation. Worse than that that, it is an evolutionary dead end" - Dan Simmons
"Safety in stagnation. Where are the revolutions in human thought and culture and action.." - Dan Simmons
The Parasite of the Model
If every trading desk, every hedge fund, and every retail investor utilizes the exact same machine intelligences to parse the exact same datasets, what happens? We achieve perfect efficiency, which sounds great in a textbook, but in reality, it creates a perfectly fragile monoculture. It leads to an evolutionary dead end.
When algorithms trade against algorithms, liquidity evaporates the second an event occurs outside their training data. We seek "safety in stagnation" by trusting the machines, but in doing so, we strip away the human revolutions in thought and action that actually drive progress and market opportunities. The symbiote of man and algorithm becomes parasitic because no one is actually doing the fundamental, messy, ground-level work of true price discovery.
The Financial Takeaway: If your entire investment thesis relies on an AI scraping the web faster than another AI, you have no moat. The real edge in the coming decade will belong to the investors who step away from the machine. Cultivate deep, idiosyncratic human insight. Seek the revolutions in culture and human action that a backward-looking algorithm fundamentally cannot predict.
The best test is simply, does it solve real world novel problems? If not then it's not intelligent.
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