Sorry, AI Just Can’t Sniff Out a Market Crash
Wiki Article
Finance innovator Joseph Plazo just warned a room full of elite students something Wall Street won’t admit: AI may be efficient, but it can’t judge the unexpected.
MANILA — This wasn’t a pep talk—it was a strategic slap.
On a humid Thursday morning at the prestigious AIM campus in Manila, Plazo stood before a sea of students from top Asian universities—HKUST—ready for a sermon on AI’s glory in finance.
What they got instead? A jolt of truth.
“AI is like your smartest intern,” Plazo quipped, “But you still don’t give the intern the keys to your vault.”
The room laughed. Then they stilled. Because he wasn’t joking.
### The Flaw in the Code: No Judgment
Let’s be clear—Plazo isn’t some Luddite clinging to the past. He designs trading AIs. His firm, Plazo Sullivan Roche Capital, runs some of the most accurate systems on global markets. He understands machine learning like few do.
But that’s exactly why his warning felt urgent.
“The problem isn’t AI,” he told the room. “It’s our wishful thinking. We keep dreaming it’ll save us from making hard decisions. It won’t.”
Plazo shared real-world case studies—moments when AI signaled winning trades… just ahead of a central bank pivot or an unexpected war. Events that didn’t fit the algorithm.
### Smart Students Tried to Push Back—They Didn’t Win
A student from Kyoto asked if LLMs might someday gauge global sentiment.
Plazo didn’t flinch.
“AI can catch a tweetstorm. But it can’t hear fear in a press conference. It misses regret in a central banker’s sigh.”
The room reacted. That hit different.
Another asked, “Can AI ever understand conviction?”
Plazo raised an eyebrow.
“Conviction isn’t math. It’s gut. It’s forged by failure and memory. You don’t download that.”
### A Wake-Up Call for Tomorrow’s Titans
This wasn’t about flash trading or chatbots. It was about principle.
Students admitted they saw AI as a cheat code—an escape hatch from risk, from thinking too hard. Plazo tore that idea down.
“You can automate your trades. You can’t automate your integrity.”
That line echoed. Because everyone in that room—from the copyright cowboys to the quant whizzes—wanted alpha. But not at the cost of why they started.
### So What’s AI Good For?
Plazo didn’t trash AI. He credited its strengths:
- It filters noise.
- It backtests at scale.
- It spots technical setups better than any human.
But it can’t read sarcasm. It fails to sense when a politician is bluffing. And it doesn’t know if your retirement burns.
“If your AI bot makes a bad call,” Plazo asked, “do you still accept blame? Or do you blame the code?”
That was the mic drop.
### This Isn’t About AI—It’s About You
Plazo wasn’t preaching finance. He was preaching accountability. Use AI—but don’t worship it. Let it assist—not decide.
And yes—he still believes in the machines. He’s building tools that track geopolitics, misinformation, even psychological nuance.
get more info But he left no doubt:
“No machine can tell you when *not* to act. That’s your job.”
### Final Thought: Maybe the Future Needs Less Code—And More Courage
As the crowd filed out—buzzing, challenged, changed—one phrase echoed down the halls:
“AI doesn’t know your values. So don’t let it make your decisions.”
In a world chasing speed, Plazo offered something rarer:
A mirror.
Because investing isn’t just about *winning*. It’s about knowing **why** you played.