The investment world has always been shaped by stories—what we believe about value, growth, risk, and opportunity. As I’ve shared in past memos, something subtle feels like it’s shifting. The stories aren’t just about the market anymore. Increasingly, they’re shaping it.
Let’s talk about how that’s happening—and why AI may be the quiet amplifier in the room.
This memo isn’t meant to scare you if AI or large language models feel unfamiliar or uncomfortable. It’s here to educate—so that we can step into a place of curiosity about what the future might hold, together.
We’ve reached a point where artificial intelligence, particularly large language models (LLMs), is being used across the financial industry in very real, practical ways. Research teams use it to summarize earnings calls. Analysts rely on it to sift through SEC filings. Advisors draft commentary and strategy notes in minutes, not hours. Hedge funds use it to parse sentiment, synthesize global headlines, and generate trade ideas at scale.
And here’s where it gets interesting:
The models don’t just summarize data—they learn from it.
They’re trained on the very market behavior they now help explain. They echo the narratives that have already been written. And in that loop, something both fascinating—and risky—can happen.
If everyone starts using similar tools to interpret the market, what began as analysis can quickly become influence.
The interpretation becomes action.
The action becomes price movement.
And the next generation of tools trains on that same movement.
That’s how we risk entering what some call a hall of mirrors—a market no longer responding to fundamentals, but to reflections of reflections. Narratives reinforced not because they are truer, but because they are louder.
Are we there yet? Not entirely.
But we’re close enough that I believe it’s time to start asking better questions.
AI is not inherently dangerous.
Unquestioned AI is.
Especially in markets as interconnected—and as narrative-sensitive—as ours.
On Thursday, we’ll look more closely at what this means for long-term investors, and specifically, what role the S&P 500 now plays in this evolving feedback loop.
So, how do we think about all of this at Somerset?
We embrace innovation. We use tools that support clear thinking.
Sometimes that includes AI. But not the kind that replaces humans—the kind that helps us slow down, gather data points, sift signal from noise, and speak with greater clarity.
As the founder of Somerset, I look forward to a future where AI allows us to give more of our time to what truly matters: relationships, planning, wisdom, and care.
We use technology to get closer to the truth—not to dress it up. To brainstorm better. To ask sharper questions. To see through more thoughtful lenses.
And always—always—every idea we share is shaped by human hands.
Every conversation is held in the context of your life, not a prompt.
We don’t cut corners. We make space.
For better thinking.
For real connection.
For trust that builds quietly, over time.
That’s how we use technology at Somerset.
Lauren Pearson, Managing Director
The most important thing in my life is my family. My husband, Andrew, and our three smart and brave daughters.