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.
Picks for you
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.
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.
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.
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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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
