these possibilities are already priced into those securities
This post argues that markets do not seem to be expecting an AGI explosion (which, of course, could be interpreted as evidence that such an explosion is unlikely to occur and the market is correct to not price the possibility in).
In that paragraph I meant to refer only to the âAI boomââessentially all the recent LLM stuff. In general I donât think it matters to the investor whether the possibility of AGI is accounted for in the markets because the benefits of such growth would likely be concentrated in firms that do not yet exist.
The post you linked to also discusses the possibility of trying to use incorrectly priced debt instruments to take capitalize on the potential development of AGI. However, such a strategy is not realizable in practice because youâd need to find a counter-party/âlender. At best, youâd end up with a callable debtânot very useful over an extended time horizon.
This post argues that markets do not seem to be expecting an AGI explosion (which, of course, could be interpreted as evidence that such an explosion is unlikely to occur and the market is correct to not price the possibility in).
In that paragraph I meant to refer only to the âAI boomââessentially all the recent LLM stuff. In general I donât think it matters to the investor whether the possibility of AGI is accounted for in the markets because the benefits of such growth would likely be concentrated in firms that do not yet exist.
The post you linked to also discusses the possibility of trying to use incorrectly priced debt instruments to take capitalize on the potential development of AGI. However, such a strategy is not realizable in practice because youâd need to find a counter-party/âlender. At best, youâd end up with a callable debtânot very useful over an extended time horizon.