The United States economy is currently facing uncertainty about the potential for a recession, which may occur in late 2024. This uncertainty has led investors to seek ways to protect their wealth during economic turmoil. To help create a recession-resistant portfolio, Finbold turned to OpenAI’s cutting-edge artificial intelligence tool, ChatGPT-4o.
The AI tool identified stocks and crypto assets that have the potential to withstand the effects of an economic downturn. In terms of stocks, the platform recommended defensive equities such as consumer staples like Procter & Gamble (NYSE: PG) and Coca-Cola (NYSE: KO), which produce essential goods that remain in demand regardless of economic conditions. Utilities like NextEra Energy (NYSE: NEE) and Duke Energy (NYSE: DUK) were also suggested for their stability in providing essential services like electricity and water. Healthcare giants Johnson & Johnson (NYSE: JNJ) and Pfizer (NYSE: PFE) were highlighted for their robust medical supply and pharmaceutical demand.
The AI tool also suggested dividend-paying stocks like AT&T (NYSE: T) and Verizon (NYSE: VZ), which offer steady income even during economic downturns. Additionally, dividend aristocrats like 3M (NYSE: MMM) and McDonald’s (NYSE: MCD) were featured for their reliability and stability. Value stocks such as Berkshire Hathaway (NYSE: BRK.A) and Microsoft (NASDAQ: MSFT) were included for their strong balance sheets and stable earnings.
For broad market exposure, the portfolio included S&P 500 ETFs like SPY and VOO, as well as a gold ETF (GLD) to act as a safe-haven asset. In the crypto portfolio, major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) were highlighted for their store of value properties. Stablecoins like USD Coin (USDC) and Tether (USDT) were recommended for their stability and as a hedge against market volatility. Utility tokens like Binance Coin (BNB) and Chainlink (LINK) were also identified for their diverse use cases and enhancing utility in the decentralized finance (DeFi) sector.
The AI tool emphasized the importance of diversification across different sectors and asset classes to reduce risk, as well as the need for regular rebalancing and staying informed about market trends and economic indicators for better decision-making. It’s essential to note that the content provided should not be considered investment advice, as investing is speculative and involves risks to capital.
