Dave Nadig: Pick your favorite crisis - they're all interconnected

On this episode of Raise Your Average™, Dave Nadig from VettaFi's ETFTrends and ETFdb.com, joins us to discuss the interconnectedness of the banking system, the increasingly hyper-compliance culture in investment management, and the impact of emerging technologies like ChatGPT and AI. We dive into the recent banking crisis at SVB and how it highlights, for example, the need for better communication between advisors and clients during uncertain times. We also explore the potential of AI tools like ChatGPT to improve advisor services and the long term impacts of AI on the financial industry. Thank you for joining us for this thought-provoking conversation on the future of finance.
Timestamped Highlights:
[00:04:19] "Polycrisis: Understanding the Interconnectedness of Economic and Market Problems"
[00:07:44] "Financial Advisors React to SVB's Collapse - how and when matters!"
[00:09:41] Navigating Compliance Culture in Investment Markets.
[00:13:08] Navigating Compliance: Finding Middle Ground for Communication.
[00:21:02] "The Banking Crisis: A Simple Systemic Issue?"
[00:28:36] "Overestimating and Underestimating AI: Mythbusting Explained"
[00:37:07] "e.g. Maximizing Chat GPT's Editing Potential"
[00:42:03] "Trust and Providence: The Future of Reviews"
[00:46:08] "Improv and Humor: Keys to Achieving Sentience? AI is not capable of either, but it is highly capable and extremely useful."
[00:47:59] "e.g. Chat GPT and Wolfram Alpha: Creating Connections"
Episode Summary
- The issue in the banking industry is systemic
- Fractional reserve banking allows for asset and liability mismatching, causing systemic risk
- Tightening the system is the solution to prevent people asking for their money back
- Financial advisors with wealthy clients had a different weekend due to SVB banking crisis
- Advisors reassure clients by showing portfolio's exposure
- Rules in the investment market create a hyper-compliance culture
- Advisors need to find ways to communicate with clients that firms are comfortable with
- Multiple factors contributed to the SVB crisis
- Investing in high volatility opportunities has risks and rewards
- Design collaboration is essential for successful projects
- Advisors should stay informed and learn to effectively use AI tools like Chat GPT
- AI tools are developing quickly and will disintermediate big chunks of financial services workflows.
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Where to find Dave Nadig, VettaFi
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Dave Nadig on Linkedin - / dave-nadig-9461
Dave Nadig on Twitter - / davenadig
ETFTrends.com - etftrends.com
ETFdb.com - etfdb.com/
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Where to find the Raise Your Average crew
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Mike Philbrick on Linkedin - / michaelphilbrick
Adam Butler on Linkedin - / adamdbutler
Rodrigo Gordillo on Linkedin - / rodrigogordillo
ReSolve Asset Management - investresolve.com
Pierre Daillie on Linkedin - / pierre-daillie-advisor...
Joseph Lamanna on Linkedin - / josephlamanna
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Music credit: In Hip Hop, Paul Velchev (8MJZA6T3LK)