Using ChatGPT to Decode Stock Price Movements — An Academic Survey
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New Large Language Models (LLMs) are uncharted territory in financial economics.
Of course, Language models in financial applications are not new. A notable example is FinBERT, a Transformer model based on Google’s BERT architecture.
However, with the recent breakthroughs of Generative Pretrained Transformers (like ChatGPT), the ability of LLMs and their impact on various fields should be discussed and re-evaluated.
This article delves into the scientific literature for new papers that describe the implications of ChatGPT on the financial market: Specifically, we discuss:
- How ChatGPT deciphers Fed’s statements better than human financial experts and other models.
- The effectiveness of ChatGPT at capturing investor sentiment.
- How ChatGPT compares to other Language models in terms of forecasting market movements.
Let’s dive in.
