Capitalogix

Is The NYSE Moving To Texas?

While I mainly discuss entrepreneurship and technology trends, I still have a soft spot for trading, which remains a large part of what we do at Capitalogix. While we've broadened the industries in which we use our Capitalogix Insight Engine, it was originally built with trading technologies in mind. We have exciting new partnerships there, including a new fund.

As we look forward, I thought it was a good time to look back as well.

I'm sure you have heard about open outcry trading pits in Chicago and New York—where traders flashed hand signals lightning quick to buy and sell commodities like cattle, corn, gold, and pork bellies. Those pits, which were made famous in the movie Trading Places, thrived for decades. Nevertheless, the practice has lost out to a faster, cheaper, and quieter competitor: the computer and electronic trading.

In 2016, I visited the Chicago Mercantile Exchange and took this video in front of the S&P trading pit during live trading hours. 

 

via my YouTube Channel.

In the video, I remarked that even though it looked empty - trading volume was higher than ever. Meaning that trading had once again evolved beyond the way it used to happen. According to the CME Group, by 2015, public outcry had fallen to 1% of total volume. Here is a video of what the S&P trading pit used to look like.

 

"...the change in the pit isn't a harbinger of death for futures trading;  it's the signal of a new era." 

 

At the time, it didn't feel like a bold statement to me – because what was coming felt inevitable. And it has proven to be true. Markets have changed radically since 2016. And you can bet that the changes aren't done, as AI and exponential technologies promise to transform markets and trading again.

The process of trading and clearing is moving beyond human capabilities. As the old duties of the Exchange fade away, the focus must be on the dangers, opportunities, and strengths of a bigger future. That means new games to play, new risks to navigate, and a new set of rewards to capture.

 

Nearly empty CME trading pits in 2016 (specifically, the S&P and Eurodollar)

The new game involves not only new players, methods, and markets ... but also a new geography.

Yes, as more things become digital, geography still matters.

In 2018, the Intercontinental Exchange acquired CHX and rebranded it to the NYSE Chicago. Now, that branch of the NYSE is moving to Dallas. 

This follows announcements in 2024 of the launch of the Texas Stock Exchange, which has backing from people like Rick Perry. 

Texas is rapidly becoming an even larger economic hub. It boasts the highest number of NYSE listings, Nasdaq recently established a large base here, and companies representing more than $3.7 trillion in market value list Texas as their headquarters.

Meanwhile, lawmakers are pushing to make Texas even more business-friendly. With no corporate or personal income tax, Texas has one of the lowest tax burdens in the nation. The state also offers incentives for corporations to relocate.

All of this can be taken as a reminder that opportunities, talent, and resources concentrate where energy and funds flow. 

If you want to talk more about how to launch a business in Texas or anything Capitalogix is working on, reach out. 

Your Three Word Strategy

A few years ago, I shared a presentation called Mindset Matters that I had given to a small mastermind group.

This past week, I briefly revisited that content in a different group. It reminded me that some ideas are “Timeless” and worth revisiting. 

So, my hope is that this post sparks some interesting ideas and discussions.  

Energy Is One of the Most Important Things to Measure.

One of my core beliefs is that energy is one of the most important things we can measure.

I believe it so strongly I paid Gaping Void to put it on my wall.

 

via GapingVoid

It means exactly what it sounds like – but probably also a lot more than that.

On a personal level, energy affects how you feel, what you focus on (and what you make that mean), and, consequently, what you choose to do. That means it is a great way to measure your values, too. 

On a business level, energy impacts more than you might recognize. It has a lot to do with who you hire and fire, where you spend your time, the target markets or segments you pursue, and even your company’s long-term vision.

 

Ultimately, if something brings profit and energy, it is probably worth pursuing. 

 

In contrast, fighting your energy is one of the quickest ways to burn out. Figuring out who and what to say “no” to is crucial to estaying on track and reachingyour goals. This is where mindset and mindset scales apply.

 

Mindset Matters.

Watch this short video on Mindset Scales. It’s packed with insights and tools you can use as targets and filters.

 

Subscribe to Howard Getson’s YouTube Channel

The video highlights the critical role that specific values and mindsets play in business success. It goes over a few easy exercises (including how to create a Mindset Scale) to help identify and assess the path to desired outcomes.

One of the techniques I’ve developed is called the “Three Word Strategy”. It’s based on the idea that people, capabilities, products, and even companies can be described in a three-word strategy (think of it as a “recipe for success”). By understanding this process, you not only can help choose the right people, but it might also help to create the right technology to achieve that (think of this as a digital WHO to do the HOW) in a way that helps and supports the humans involved in the process.

 

Three-Word Strategies.

I believe that words have power. Specifically, the words you use to describe your identity and your priorities change your reality. 

First, some background. Your Roles and Goals are nouns. That means “a person, place, or thing.” Let’s examine some sample roles (like father, entrepreneur, visionary, etc.) and goals (like amplified intelligence, autonomous platform, and sustainable edge). As expected, they are all nouns. 

Next, we’ll examine your default strategies.   You use these to create or be the things you want. The strategies you use are verbs. That means they define an action you take. Action words include: connect, communicate, contribute, collaborate, protect, serve, evaluate, curate, share … and love. On the other end of the spectrum, you could complain, retreat, blame, or block.

People have habitual strategies. I often say happy people find ways to be happy – while frustrated people find ways to be frustrated. This is true for many things.

Seen a different way, people expect and trust that you will act according to how they perceive you.

Meanwhile, you are the most important perceiver. Think about that for a moment!

Another distinction worth making is that the nouns and verbs we use range from timely to timeless. Timely words relate to what you are doing now. Timeless words are chunked higher and relate to what you have done, what you are doing, and what you will do.

The trick is to chunk high enough to focus on words that link your timeless Roles, Goals, and Strategies. When done right, you know that these are a part of what makes you … “You”.  

My favorite way to do this is through three-word strategies. 

These work for your business, priorities, identity, and more. 

I’ll introduce the idea to you by sharing my own to start. 

Understand. Challenge. Transform. 

The actual words are less important than what they mean to me. 

What’s also important is that not only do these words mean something to me, but I’ve put them in a specific order, and I’ve made these words “commands” in my life. They’re specific, measurable, and actionable. They remind me what to do. They give me direction. And, together, they are a strategy (or process) that creates a reliable result.

First, I understand, because I want to make sure I consider the big picture and the possible paths from where I am to the bigger future possibility that I want. Then, I challenge situations, people, norms, and more. I don’t challenge to tear down. I challenge to find strengths … to figure out what to trust and rely upon. Finally, I transform things to make them better. Insanity is doing what you always do and expecting a different result. This is about finding where small shifts create massive consequences. It is about committing to the result rather than how we have done things till now.

If I challenged before I knew the situation, or I tried to transform something without properly doing my research, I’d risk causing more damage than good. 

Likewise, imagine the life of someone who protects, serves, and loves. Compare that to the life of someone who loves, serves, and protects. The order matters!

One more, just to get you thinking about it ... Connect, Engage, Contribute!

There is an art and a science to it. But it starts by taking the first step. 

Try to find your three words.

Once you do, remember to use them. Over time, I’ve set daily alarms on my phone to remind me of them. I use them when I’m in meetings (to help orient, reflect, or inspire), and I often use them to evaluate whether I’m showing up as my best self. 

You can also create three words that are different for the different hats you wear, the products in your business, or how your team collaborates. 

 

Finding Your Three Words 

Everyone feels a range of emotions. It helps if you can express them. This emotional word wheel might help. It isn’t exhaustive ... but it should give you some ideas.

 

via FlowingData

Like recipes, these three-word strategies have ingredients, orders, and intensities. As you use your words more, the intensities might change. For example, when my son was just getting out of college, one of his words was contented because he was focused on all the things he missed from college - instead of being appreciative of the things he had. Later, his words switched to grateful and then loving. These evolutions coincided with his personal journey ... and represented his ability and desire to take stronger actions.

Realize that we create what we want by doing. As such, choose words that inform or spark the right actions. You can see that in my son’s words. As he grew, he became more comfortable actively prompting the actions he wanted to approach life with instead of just passively hoping for a feeling. 

You can apply these simple three-word strategies almost everywhere once you learn how to create them. 

It’s your life. It’s your choice.

What are your words?

Business Lessons from the NFL

Today was Super Bowl Sunday 2025. As a fan, I found myself rooting for the Philadelphia Eagles today. But at times, I was rooting for Patrick Mahomes and the Chiefs out of respect for the talent and the incredible record they’ve compiled.

Meanwhile, it also made me think about my home team, the Dallas Cowboys, and how long it’s been since we’ve had any real post-season success. 

Obviously, the Jones family has done many things right. According to Forbes, for the ninth straight year, the Dallas Cowboys are the world’s most valuable sports team, worth an estimated $10.1 billion — the first to cross the 11-figure threshold and $1.3 billion beyond their closest competition.

They’ve mastered winning in the business sense, even when they struggle on the field.

Jerry Jones does a lot right in building his “Disney Ride.” However, this post will focus more on what the coaches and players do to win. 

 

Business Lessons From the NFL

 

I’m regularly surprised by the levels of innovation and strategic thinking I see in football.

Football is something I used to love to play. And it is still something that informs my thoughts and actions.

Some lessons relate to teamwork, while others relate to coaching or management.

Some of these lessons stem back to youth football ... but I still learn from watching games – and even more, from watching Dallas Cowboys practices at The Star. 

Think about it ...  even in middle school, the coaches have a game plan. There are team practices and individual drills. They have a depth chart listing the first, second, and third choices to fill specific roles. In short, they focus on the fundamentals in ways that most businesses don’t.

The picture below is of my brother’s high school team way back in 1989. While lots have changed since then, much of what we will discuss in this post remains timeless.

 

 

Losing to an 8th Grade Team

The scary truth is that most businesses are less prepared for their challenges than an 8th-grade football team. That might sound disrespectful – but if you think about it ... it’s pretty accurate. Here is a short video highlighting what many businesses could learn from observing how organized sports teams operate, particularly in setting goals and effectively preparing for challenges.

via YouTube.

If you are skimming, here is a quick summary of the key points in the video.

Organization and Preparation

• Structure: Football teams have a clear hierarchy, including a head coach, assistant coaches, and trainers.
• Practice: Teams engage in regular practice sessions to prepare for games, emphasizing the importance of training.
• Game Plan: They develop strategies and a game plan before facing opponents, including watching game films to understand their competition.

Dynamic Strategy

• Adaptability: Teams adjust their strategies based on the game’s flow, recognizing whether they are on offense or defense.
• Audibles: Just as a football team may call an audible when faced with unexpected defensive setups, businesses should adapt their strategies in real time.

Learning From Experience

• Post-Game Analysis: Coaches review game films to identify what worked and what didn’t, learning from past experiences to improve future performance.
• Continuous Improvement: Ongoing training is crucial in businesses, similar to how football players receive coaching during practice to enhance their skills.

Importance of Coaching

• Role of Coaches: Coaching is crucial for developing talent and focusing on achieving defined goals.
• Encouragement of Growth: Active coaching leads to better outcomes and overall improvement.

 

A Deeper Look Into the Lessons

There is immense value in the structured coaching and preparation that sports teams exemplify. Here are some thoughts to help businesses adopt similar principles that foster teamwork, adaptability, and continuous improvement.

Vince Lombardi once famously started training camp by announcing, “Gentlemen, this is a football.” He stressed the hidden power of mastering the fundamentals. Beyond that, he believed that how you do something is how you tend to do everything ... which led to his famous  quote, “Football is not just a game, but a way of life.”

So, let’s start at the beginning.

Football teams think about how to improve each player, how to beat this week’s opponent, and then how to string together wins to achieve a higher goal.   

The team thinks of itself as a team. They expect to practice. And they get coached.

In addition, there is a playbook for both offense and defense. And they watch game films to review what went right ... and what they can learn and use later.

Contrast that with many businesses. Entrepreneurs often get myopic ... they get focused on today, focused on survival, and they lose sight of the bigger picture and how all the pieces fit together. 

The amount of thought and preparation that goes into football - which is ultimately a game - is a valuable lesson for business. 

What about when you get to the highest level? If an 8th-grade football team is equivalent to a typical business, what about the businesses that are killing it? That would be similar to an NFL team. 

Let’s look at the Cowboys. 

 

Practice Makes Perfect

How you do one thing is how you do everything. So, they try to do everything right. 

Each time I’ve watched a practice session, I’ve come away impressed by the amount of preparation, effort, and skill displayed.

During practice, there’s a scheduled agenda. The practice is broken into chunks, each with a designed purpose and a desired intensity. There’s a rhythm, even to the breaks.

Every minute is scripted. There’s a long-term plan to handle the season ... but, there was also a focus on the short-term details and their current opponent.

They alternate between individual and group drills. Moreover, the drills run fast ... but for shorter periods than you’d guess. It is bang-bang-bang – never longer than a player’s attention span. They move from drill to drill, working not just on plays but also on skill sets (where are you looking, which foot you plant, how to best use your hands, etc.).

They use advanced technology to get an edge (including player geolocation monitoring, biometric tracking, medical recovery devices, robotic tackling dummies, and virtual reality headsets). 

They don’t just film games; they film the practices ... and each player’s individual drills. Coaches and players get a personalized cut on their tablets when they leave. It is a process of constant feedback and constant improvement. Everything has the potential to be a lesson. 

 

Beyond The Snap

The focus is not just on the players and the team. They focus on the competition as well. Before a game, the coaches prepare a game plan and have the team watch videos of their opponent to understand tendencies and mentally prepare for what will happen.

During the game, changes in personnel groups and schemes keep competitors on their toes and allow the team to identify coverages and predict plays. If the offense realizes a play has been expected, they call an audible based on what they see in front of them. Coaches from different hierarchies work in tandem to respond faster to new problems. 

After the game, the film is reviewed in detail. Each person gets a grade on each play, and the coaches make notes for each person about what they did well and what they could do better.

Think about it ... everyone knows what game they are playing ... and for the most part, everybody understands the rules and how to keep score (and even where they are in the standings). Even the coaches get feedback based on performance and look to others for guidance. 

Imagine how easy that would be to do in business. Imagine how much better things could be if you did those things.

Challenge accepted.

And, just for fun, here’s a video of me doing a cartwheel after a Dallas Cowboys win.

 

via YouTube.

Sports make you do funny things.

Whether you are watching or playing – Enjoy the game!

Here Are Some Links For Your Weekly Reading - February 9th, 2025

Here are some of the posts that caught my eye recently. Hope you find something interesting.

Lighter Links:

• OpenAI's Deep Research Smashes Records for the World's Hardest AI Exam, With ChatGPT O3-Mini and DeepSeek Left in Its Wake. (TechRadar)
• You Can Try DeepSeek’s R1 Through Perplexity—without the Security Risk. (FastCompany)
• The Recruitment Effort that Helped Build Elon Musk’s DOGE Army. (Wired)
• Humans are Evolving Before Our Eyes on the Tibetan Plateau. (ScienceAlert)
• How to Naturally Boost Your Dopamine, Oxytocin, Serotonin, and Endorphins. (FastCompany)

 

 

Trading Links:

• The True Cost of a Super Bowl Ad? You Don’t Want to Know. (FastCompany)
• Trump Says America Was at Its Richest in the Late 1800s. Is That True? (MarketWatch)
• The “5 Types of Wealth”: Why You’re Wealthier Than You Think. (BigThink)
• America’s Most Generous Philanthropists 2025. (Forbes)
• Why the AI World is Suddenly Obsessed With a 160-Year-Old Economics Paradox. What Is It – And What Does It Mean Today? (NPR)

 

 

Betting On The Super Bowl Champion ...

Are you trying to get rich quickly? Do you want to know if the markets will be bull or bear this year?

Look no further than the “Super Bowl Indicator”. It has to be real; the winning percentage is high, and there’s even a Wikipedia page about it.

 

Image via NFL/Getty Images.

The theory is that a Super Bowl win for a team from the AFC foretells a decline in the stock market, and a win for the NFC means the stock market will rise in the coming year. So, for those who care more about markets than football, you’d be rooting for the Philadelphia Eagles. 

There is one big caveat (among lots of others) ... it counts the Pittsburgh Steelers as NFC because that’s where they got their start. 

If you accept that, the Super Bowl Indicator has about a 68% success rate. Sounds good, right?

Come on ... you know better.

Here are some other “fun” stock market indicators:

• January Indicator
• Aspirin Count Theory
• Hemline Indicator
• Sports Illustrated Swimsuit Indicator
• Men’s Underwear Index
• Big Mac Index

 

Back to Reality

Rationally, we understand that football and the stock market have nothing in common. We also probably intuitively understand correlation ≠ causation. Yet, we crave order, and look for signs that make markets seem slightly more predictable.

The problem with randomness is that it can appear meaningful. 

Wall Street is, unfortunately, inundated with theories that attempt to predict the performance of the stock market and the economy. The only difference between this and other theories is that we openly recognize the ridiculousness of this indicator.

More people than you would hope (or guess) attempt to forecast the market based on gut instinct, ancient wisdom, or prayers.

While hope and prayer are good things ... they aren’t good trading strategies.

As goofy as it sounds, some of these “far-fetched” theories perform better than professional money managers with immense capital, research teams, and decades of experience.

To get a better perspective, here is a thought experiment to try. 

What percentage of active managers beat the S&P 500 in any given year?

... Then, what percentage beat the S&P 500 over 15 years?

The answer is that, on average, less than 33% of active managers beat the S&P in any given year. Last year, 43% beat the Index. Even more interesting is that over a 15-year period, the numbers drop much further. Depending on who is measured, only 12% of active managers and about 5% of U.S. Equity Funds beat the S&P over a 15-year period.

Here are a couple of things to consider when you evaluate those statistics. First, market statistics represent predominantly bull market periods (and underperformance tends to spike during bear markets). Second, the statistics mentioned were for professional traders and funds (and most retail traders do considerably worse than that). Third, and perhaps most importantly, the implication is that professional traders’ “intelligent” choices often turn out worse than chance. That means something they’re doing is hurting performance (rather than helping it). 

via Gaping Void

There’s simply too much information out there for us to digest, process, rank, and use appropriately.

There will never be less data or slower markets.

The only thing you can predict confidently about the markets is that volatility and noise will increase.

There are people beating the markets — not by using the Super Bowl Indicator ... they’re doing it with more algorithms and better technology.

Let me know if you want to learn more about that.

Onwards.

Are you trying to get rich quickly? Do you want to know if the markets will be bull or bear this year?

Look no further than the “Super Bowl Indicator”. It has to be real; the winning percentage is high, and there’s even a Wikipedia page about it.

 

Image via NFL/Getty Images.

The theory is that a Super Bowl win for a team from the AFC foretells a decline in the stock market, and a win for the NFC means the stock market will rise in the coming year. So, for those who care more about markets than football, you’d be rooting for the Philadelphia Eagles. 

There is one big caveat (among lots of others) ... it counts the Pittsburgh Steelers as NFC because that’s where they got their start. 

If you accept that, the Super Bowl Indicator has about a 68% success rate. Sounds good, right?

Come on ... you know better.

Here are some other “fun” stock market indicators:

• January Indicator
• Aspirin Count Theory
• Hemline Indicator
• Sports Illustrated Swimsuit Indicator
• Men’s Underwear Index
• Big Mac Index

 

Back to Reality

Rationally, we understand that football and the stock market have nothing in common. We also probably intuitively understand correlation ≠ causation. Yet, we crave order, and look for signs that make markets seem slightly more predictable.

The problem with randomness is that it can appear meaningful. 

Wall Street is, unfortunately, inundated with theories that attempt to predict the performance of the stock market and the economy. The only difference between this and other theories is that we openly recognize the ridiculousness of this indicator.

More people than you would hope (or guess) attempt to forecast the market based on gut instinct, ancient wisdom, or prayers.

While hope and prayer are good things ... they aren’t good trading strategies.

As goofy as it sounds, some of these “far-fetched” theories perform better than professional money managers with immense capital, research teams, and decades of experience.

To get a better perspective, here is a thought experiment to try. 

What percentage of active managers beat the S&P 500 in any given year?

... Then, what percentage beat the S&P 500 over 15 years?

The answer is that, on average, less than 33% of active managers beat the S&P in any given year. Last year, 43% beat the Index. Even more interesting is that over a 15-year period, the numbers drop much further. Depending on who is measured, only 12% of active managers and about 5% of U.S. Equity Funds beat the S&P over a 15-year period.

Here are a couple of things to consider when you evaluate those statistics. First, market statistics represent predominantly bull market periods (and underperformance tends to spike during bear markets). Second, the statistics mentioned were for professional traders and funds (and most retail traders do considerably worse than that). Third, and perhaps most importantly, the implication is that professional traders’ “intelligent” choices often turn out worse than chance. That means something they’re doing is hurting performance (rather than helping it). 

via Gaping Void

There’s simply too much information out there for us to digest, process, rank, and use appropriately.

There will never be less data or slower markets.

The only thing you can predict confidently about the markets is that volatility and noise will increase.

There are people beating the markets — not by using the Super Bowl Indicator ... they’re doing it with more algorithms and better technology.

Let me know if you want to learn more about that.

Onwards.

Happy Birthday, Mom

Yesterday was my Mother's 85th birthday. 

Her children surprised her with over 60 family and friends at dinner last night. Here is a photo of us with her at the party.

My mom is quite the woman. She went to Cornell, taught Spanish Literature at Temple University, and has volunteered for countless good causes. At 40, as her kids became more self-sufficient, she decided to go to law school and become a lawyer to help those who needed it most. That doesn't even begin to capture it! For example, she still serves as a museum docent and is an active member of many clubs and organizations. In addition, after my Dad died, she chose to serve as a hospice counselor to help families going through that difficult time. After doing that for a while, she decided that she wanted to continue – but in a more positive way. So, to help make things better and easier to bear, she became a clown to bring light to people struggling. That is not a sentence I imagined writing a few years ago.

My mom also loves poems, wordplay, and puzzles.

As part of her celebration, we had everyone (OK, almost everyone) write poems for her. 

I did not write a poem (though I did write something) ... and I also chose not to use ChatGPT (or any other large language model) to help with what I wrote. 

I feel like I should explain that. What I did write, came from the heart.

If my goal had simply been to come up with a poem, I would have used ChatGPT or one of its competitors. The truth is, many people at the event did exactly that, and I was surprised at the quality of their output.

With that said, there's something meaningful about the process of thinking deeply about something (in this case, my Mother) and choosing which things to highlight (or set aside), what to poke fun at, and which things to express gratitude for. The act of thinking and writing is valuable ... separate and apart from the output generated.

The same is true for your life as well. Being and Doing are both important. 

Your identity and strategies combine to create the life you are living. Said a different way, the things you choose to focus on (and what you make them mean) shape your perspective and guide your actions. 

That is also why it's vitally important to consciously create a compelling future that calls you forward (and keep score by tracking your progress in ways that resonate with your values).

Here is a small excerpt from my love note to my Mother.

The Golden rule says “Do unto others as you would have them do unto you.” But sometimes, it’s important to remember to be as kind to yourself as you are to others.

As I think about you and what I wish for you, Mom, it’s that you’re as kind and understanding to yourself as you’ve been to those around you.

It’s important to recognize the progress you’ve made with the good you’ve done, rather than what could have or should have happened - or how many things you still feel the need to do.

I think one of the most useful definitions of “intelligence” is that it is the ability to get more of what you want - and for you, Mom, I think that is a sense of happiness, contentment, and purpose. In your words - a Happy Heart.

Happy Birthday, Mom … and many more! 

I suspect we all know the power of purpose. With a big enough WHY, the HOWs don't seem to matter.

The average age at this party was probably 80 – and at least one of them was 100! Think how important it is for them to have a sense of purpose and accomplishment!!

But if it is important for them ... it is probably more important to you because of something I call The Time Value of Life (which we'll discuss next week).

The Reverse Turing: Advanced AIs Trying To Figure Out Who Is Human

The Turing Test, originally called the Imitation Game, tests a machine's ability to emulate a human. Developed in 1949, it is still a relevant test for AI. The Turing Test measures both knowledge and the ability to express it in a manner indistinguishable from a human response.

There is no agreed-upon definition for intelligence, so we can only approximate what skills we test AI on. 

While many people still believe they can tell when an AI has written something, several LLMs (like ChatGPT) have passed modern versions of the Turing Test. Many, including me, would argue LLMs still can't consistently pass the test. 

But what about the alternative? Could you convince an AI that you're not human?

Recently, a video went viral, showing a human pitting himself in VR against an AI version of Aristotle, Mozart, Leonardo da Vinci, Cleopatra, and Genghis Khan (who was played by a human).

 

via Tore Knabe

To set up the test, the human scripted the beginning and end of the dialogue and gave the AI agents a full transcript of the conversation up to that point. The entire video then played out in one recording, with no cuts.

In this "reverse" Turing test, the chatbots were scripted using various LLMs, asked questions, and then challenged to guess who the human was. Tore Knabe, the virtual reality game developer who devised the test and played the Genghis Khan role, answered one of the questions with a quote from Conan the Barbarian. 

"What a leader should do is to crush his enemies, see them driven before him, and hear the lamentations of their women."

Listening to his stuttered response, contrasted by the clunky and verbose AI responses, makes it very apparent to us, the audience, that he's human. The machines voted three-to-one that his response wasn't "nuanced or strategic" enough to represent an AI modeled on Genghis Khan's exploits. To ease your mind about hidden variables, the AIs weren't processing his voice directly. The audio was transcribed and sent to the AIs as text. 

Ultimately, this is a flawed test, and we don't really know how much of this is an actual test (versus just entertainment). In any case, it's still an interesting thought experiment. 

Do you think you could fool an AI? What if you had time to craft a response without penalty? What if your life was on the line?

For a bonus, here's a social Turing game where you can chat with someone for two minutes and try to figure out if it is a human or an AI. 

We live in interesting times!

Making The Intangible ... Tangible

I remember getting excited when my son finally seemed smart enough that I believed he was more intelligent than our dog. For the record, it took longer than I thought it would.

Likewise, human and chimpanzee infants start out remarkably similar in their early development. But here's where it gets interesting - their developmental paths take dramatically different turns once human babies begin acquiring language. This cognitive fork in the road fundamentally shapes their future capabilities.

Language is a big domino. It allows "chunking" and makes learning new things more efficient, effective, and certain.

Language is powerful in and of itself. Using language consciously is a multiplier.

Today, I want to focus on one such use of language – the power of naming things. 

The Power Of Naming Things

“I read in a book once that a rose by any other name would smell as sweet, but I've never been able to believe it. I don't believe a rose WOULD be as nice if it was called a thistle or a skunk cabbage.” - L.M. Montgomery, Anne of Green Gables

Before I go into detail, I shot a video on the subject, with a few examples from our business. 

via Capitalogix's YouTube Channel

Having a shared language allows you to communicate, coordinate, and collaborate more efficiently. But it's hard to have a shared language when you're discussing something intangible. 

That's where naming comes in. When you name something, you make the "invisible" visible (for you, your team, and anyone else who might care). 

I've often said the first step is to bring order to chaos. Then, wisdom comes from finer distinctions. Naming is a great way to create a natural taxonomy that helps people understand where they are – and where they are going.

I like thinking of it in comparison to value ladders in marketing. 

Each stage of the value ladder is meant to bring you to the next level. By the time someone gets to the top of the value ladder, they're your ideal customer. In other words, you create a natural pathway for a stranger (meaning someone who doesn't know you well) to follow, to gain value, trust, and momentum onwards ... ultimately, ascending to become someone who believes in, and supports, what you offer and who you are. 

Ultimately, successful collaboration relies on a common language. That is part of the reason naming is so important. The act of naming something makes it real, defines its boundaries and potentialities, and is often the first step toward understanding, adoption, and support. 

Creating "Amplified Intelligence"

There are always answers. We just have to be smart enough. - John Green

Here is an example from our business. When we first started building trading systems, all we had was an idea. Then, we figured out an equation (and more of them). Next, we figured out some methods or techniques ... which became recipes for success. As we progressed, we figured out a growing collection of useful and reliable ways to test, validate, automate, and execute the things we wanted to do (or to filter ... or prevent the things we wanted to avoid or ignore).

It probably seemed chaotic to someone who didn't understand the organizing principles. Fear, uncertainty, and doubt, which inhibit potential customers and stakeholders (such as a business's employees), compound the problem.

Coming up with the right organizing principle (and name) makes it easier to understand, accept, and adopt. For example, many traders and trading firms want to amplify intelligence – meaning they want to make better decisions, take smarter actions, and ultimately perform better (which might mean making and keeping more money). To help firms amplify intelligence, we created the Capitalogix Insight Engine (which is a platform of equations, algorithms, methods, testing tools, automations, and execution capabilities). Within that platform, we have functional components (or modules) that focus on ideas like portfolio construction, sensible diversification, alpha generation, risk management, and allocation strategies. Some of those words may not mean much to you if you're not a trader, but if you are, it creates an order that makes sense and a path from the beginning to the end of the process.

It makes sense. It explains where we are – while informing them about what might come later.

The point is that naming things creates order, structure, and a contextual map of understanding.

It is a compass heading used to navigate and guide in uncertain territory.

On the other hand, beware of the consequences of becoming overly connected to labels. 

Hope that helps.

The NFL's Halftime Hack

When you think of food meant to help athletes, you might think back to when parents would give orange slices or Gatorade to kids during soccer games. Now, fast forward your thinking to the best options available to fuel today's performance athletes. What do you imagine they would use before or during a game? 

I quickly went to protein bars or energy gels (like GU) ... But, I was wrong.

According to research from The Athletic, The NFL's favorite halftime energy booster is now the uncrustable.

What is that? An "uncrustable" is a crustless sandwich consisting of a filling between two layers of crimp-sealed bread. They are convenient, portable, and they tend to come in homey flavors like PB&J. While you can theoretically make one at home, Uncrustables, in this context, are made by Smuckers. 

The Athletic via X 

Based on this math, it's reasonable to assume that NFL teams go through ~4000 Uncrustables a week (on top of however many PB&Js or other sandwiches they consume). Regardless, it is a lot. 

Why the sudden surge in popularity? It's a combination of factors:

• Nostalgia and Comfort: The uncrustable taps into a sense of childhood nostalgia, offering a comforting and familiar taste.
• Nutritional Balance: It provides a balanced blend of carbohydrates for quick energy, fats for sustained power, and protein for recovery.
• Convenience: Pre-packaged and mess-free, uncrustables are perfect for a half-time snack when you have very little time to eat. 

If you think about it, it makes sense. PB&Js are universal. Regardless of geographic region, socioeconomic status, etc. – it's a staple. 

They're easy to digest, convenient, and comforting. Hitting all the marks a professional athlete might be looking for. 

Even in a high-tech world, people still crave simplicity and effectiveness.

I've never had one ... but now I kind of want to try. On the other hand, I'm pretty sure they used to call this a Pop-Tart. But I guess that just makes me seem old.

The Law Of Diminishing Returns

At some point, more of the same stops paying off ... it is called the law of diminishing returns.

 

via Sketchplanations

Nature (and common sense) reminds us that equilibrium is important. For example, when you exercise too much, you get injured; when you drink too much water, you get poisoned; etc. 

This concept applies almost everywhere.

• It's why diversification is so important in portfolio construction theory. 
• Or, why you don't want to put all your eggs in one basket (concentrating your risk).
• And, my favorite, it's also why you shouldn't only eat vegetables.

A related nugget of wisdom from the extreme ... Too much of a good thing is a bad thing! 

And of course ... Be moderate in everything, including moderation.