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3 stocks to counter a recession, according to ChatGPT4-o

3 stocks to counter a recession, according to ChatGPT4-o

The most recent U.S. jobs report published on Friday, August 2, gave investors a fright, as evidenced by the massive bloodbath in both the stock market and across the cryptocurrency markets, with the flagship digital asset Bitcoin (BTC) now struggling to stay above $50,000.

The report, which showed that 114,000 jobs have been created in July instead of the predicted 175,000, has also reignited fears of a coming recession – partially driven by FED’s high interest rates – and is, judging by the extended trading, likely to spill over into a deeper decline during the Monday session.

Given the general climate of fears and the danger the recessionary warnings – warnings which have been many since the start of 2024 – may come to fruition, Finbold decided to consult the most advanced version of OpenAI’s flagship artificial intelligence (AI) model – ChatGPT-4o – what stocks an investor may buy to defend their wealth in case of a crash.

When asked about the best stocks to buy in the face of a looming recession, ChatGPT-4o quickly reached for several traditional defensive picks. 

ChatGPT picks 3 stocks to defend against a recession

Relying on the fact healthcare is relevant in bull and bear markets alike not as cyclical as many others, the AI’s first pick proved to be Johnson & Johnson (NYSE: JNJ). Indeed, according to ChatGPT, the very nature of healthcare as a sector, paired with JNJ’s track record of dividend and earnings growth and its robust portfolio of goods and services, makes it a strong pick for a recession.

ChatGPT explains why it is recommending JNJ. Source: Finbold & ChatGPT-4o

Keeping to the idea that essential goods and services will be in demand no matter the state of the economy, the AI decided that Procter & Gamble (NYSE: PG) is another strong pick to defend against a possible recession. According to ChatGPT, PG is a strong pick not only as a supplier of staple consumer goods but also due to its global presence and brand loyalty.

ChatGPT explains why it is recommending PG. Source: Finbold & ChatGPT-4o

The AI selected Walmart (NYSE: WMT) as the third wealth-guarding stock pick. ChatGPT explained that WMT is likely to offer a strong performance during a recession thanks to it being a discount retailer and that the firm itself is likely to also continue benefiting from the efficiency its sheer size guarantees.

ChatGPT explains why it is recommending WMT. Source: Finbold & ChatGPT-4o

Finally, it is worth pointing out that the stocks ChatGPT selected as a counter to a recession are not likely to perform particularly well in a recession, just to decline substantially less than most other assets available across the markets.

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