The CEO Forum – July 2019

AI is revolutionizing the way scams are conducted, drastically reducing operational costs while simultaneously enhancing the believability of fraudulent calls. In the 12 months since the launch of ChatGPT, AI-aided identity fraud surged nearly 1,800%, and phishing emails surged by nearly 1,300%, with their quality being the best we've ever seen. Additionally, AI-operated news sites, often used to push out misinformation, disinformation, and propaganda, grew from 40 sites to nearly 600.

Things to Know:

• Content Farms: These platforms pump out low-quality, clickbait articles to earn ad revenue. Initially, humans edited AI-drafted articles for quality, but now, AI can produce vast amounts of content with little to no oversight.
• Advertising Concerns: Reputable brands might unknowingly advertise on these spammy sites, which can mistakenly lend these articles credibility.
• Disinformation Risk: Without human checks, AI can spread false information. This ranges from accidental “AI hallucinations” (fabricated facts) to deliberate disinformation, like fake celebrity obituaries designed to increase site traffic.

Tips for Navigating Content Safely:

• Critical Thinking: Always question the authenticity of online articles.
• Recognize AI Signs: Be cautious of sites with generic names or an overload of ads. Look out for errors and placeholders (e.g., “[date]”) that suggest AI-generated content.
• Take Breaks: Regularly step away from the digital avalanche to avoid content fatigue and maintain cybersecurity awareness.

When the market drops, some investors lose perspective that downtrends and uptrends are part of the investing cycle. When stock prices break lower, it's a good time to review common terms that are used to describe the market's downward momentum.

Pullbacks

A pullback represents the mildest form of a selloff in the markets. You might hear an investor or trader refer to a dip of 5-10% after a peak as a “pullback.”¹

Corrections

The next degree in severity is a “correction.” If a market or markets retreat 10% to 20% after a peak, you’re in correction territory. At this point, you’re likely on guard for the next tier.²

Bear Market

In a Bear Market, the decline is 20% or more since the last peak.²

All of this is normal

“Pullbacks, corrections, and bear markets are a part of the investing cycle.”

When stock prices are trending lower, some investors can second-guess their risk tolerance. But periods of market volatility can be the worst times to consider portfolio decisions.

Pullbacks and corrections are relatively common and represent something that any investor may see from time to time in their financial life, often several times over the course of a decade. Bear markets are much rarer. In fact, between April 1947 and September 2021, there have only been 14 bear markets.³

A retirement strategy formed with a financial professional has market volatility factored in. As you continue your relationship with that professional, they will also be at your side to make any adjustments and help you make any necessary decisions along the way. Their goal is to help you pursue your goals.

________________________________

1. Investopedia.com, August 23, 2021
2. Forbes.com, September 20, 2021
3. Investopedia.com, October 29, 2021