Why AI Investing Is Making Markets Dumber, Not Smarter with Gary Brode

About this episode

Everyone now has the same AI. That should make markets smarter — Gary Brode says it does the opposite. Jonathan Green talks with Gary Brode (Managing Partner at Deep Knowledge Investing) about why AI is a terrible stock picker: it summarizes the herd, it cannot say "I don't know," it cannot disagree with the dominant narrative, and the places you actually make money are the moments when everybody else is wrong. Key Takeaways: • Access to information is not an edge — AI lets everyone read every 10-K in seconds, so that advantage is already priced in. The scarce skill is a different interpretation of the same facts. • AI cannot say "I don't know." It answers with total confidence, including when it is guessing. Gary hires interns for the opposite: the candidate who hits the edge of their knowledge and says they will come back with an answer. • AI is not objective. It is weighted toward mainstream media, Reddit, Substack, and a fairly monolithic view of politics and economics. Knowing those biases is the advantage. • The hyperscaler treadmill is the risk story: trillions in capex, token prices down 75–90%, models obsolete in months, and no clean way to stop spending without writing t