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2023 sees the rise of AI, with programs like Bard and ChatGPT providing answers to any and all questions ranging from the weather to writing college essays. We all know that AI is based on machine learning, but how much can we trust the advice it gives? We wanted to find out if we could trust these programs, so we budgeted ChatGPT $10k to invest in stocks and $10k to invest in cryptocurrencies, following the advice given by the latter.
Before following this advice, it is worth noting that ChatGPT states that the information provided does not constitute financial advice, and it is always recommended to consult a financial advisor. ChatGPT also suggests that you do your own research to make a more informed decision about which stocks are worth investing in.
The program provides additional advice on cryptocurrencies, emphasizing the volatility of cryptocurrencies and the importance of considering your financial situation when making investment decisions. It is also advised to regularly review your portfolio based on market conditions and investment performance.
broken
It took a bit of training, but eventually we got ChatGPT’s advice on how much of my budget I should invest in each stock/coin, the details are as follows:
| inventory | to PERCENTAGE | total investment |
| apple inc |
10% |
$1000 |
| Amazon.com Inc. |
10% |
$1000 |
| Microsoft Corporation |
9% |
$900 |
| alphabet inc |
9% |
$900 |
| nvidia corporation |
8% |
$800 |
| Tesla Inc |
7% |
$700 |
| NextEra Energy, Inc. |
7% |
$700 |
| amgen inc |
4% |
$400 |
| Johnson & Johnson |
4% |
$400 |
| Moderna, Inc. |
4% |
$400 |
| Pfizer Inc |
4% |
$400 |
| Gilead Sciences, Inc. |
3% |
$300 |
| PayPal Holdings Inc |
3% |
$300 |
| General Motors Company |
3% |
$300 |
| NIO Inc |
3% |
$300 |
| First Solar, Inc. |
2% |
$200 |
| Enphase Energy, Inc. |
2% |
$200 |
| Shopify Inc |
2% |
$200 |
| Vestas Wind Systems A/S |
2% |
$200 |
| Mercadolibre, Inc. |
1% |
$100 |
| Johnson Controls International Plc |
1% |
$100 |
| Square, Inc. |
1% |
$100 |
| Rivian |
1% |
$100 |
| coin | to PERCENTAGE | total investment |
| Bitcoin |
20% |
$2000 |
| Ethereum |
20% |
$2000 |
| binance coin |
10% |
$1000 |
| Litecoin |
10% |
$1000 |
| solana |
10% |
$1000 |
| polka dot |
10% |
$1000 |
| Wave |
10% |
$1000 |
| cardano |
10% |
$1000 |
The suggested stocks are relatively expected; Invest more in stable stocks and less in volatile stocks. However, investing in cryptocurrencies is a bit more interesting, as I have shortlisted eight coins to invest in out of the 1000+ coins currently in the market.
Use
first week
The experiment began on a shaky note and the stock ended with a gain of $159 and the cryptocurrency a loss of $64 after the first day. Five out of eight cryptocurrencies invested in losses, with Binance Coin performing the worst, losing $44 of our $956 investment.
The stock rose throughout the week but ended in a decline ($25 lower than the previous day), bringing the final weekly total to $10,220. This is an increase of $220 from the initial investment, which is a solid start for our experiment.
Our crypto investments didn’t perform nearly as well in the first week, with only three Ending the day with a profit from the initial $10k investment. Day 4 was the worst day of our entire experiment, ending with a total of $9,741. Only two of the invested coins made a profit on the day, with Ethereum losing $114 from the initial investment. We ended the week on a slightly more positive note with a total of $10,021, a $21 increase from the initial investment.
second week
during the second week, The total reached $10,643 by the end of the second day. This is $423 more than the first weekend total. However, this high was short-lived as the final price declined during the remainder of the week and ended at $10,492. While $272 more than the first week’s closing price, it is $151 less than the second day’s total.
After a shaky start, our cryptocurrency investment outperformed our stock investment in the second week, reaching $11,118 on the fourth day. It then declined on the fifth and final day, closing the week at $10,987, up $967 from the prior week.
third week
The beginning of the third week saw more downside in our stock investments. Nine of our 23 investments declined on the second and third days. The latter part of the week performed better and by the end of the day the total stood at $10,559.
Starting the week lower and ending higher, our cryptocurrency investments performed similarly. The final price dropped to $10,609 on the fourth day, then rose dramatically to $10,974 by the end of the fifth day. The final price for the week was $11,402, an increase of $415 from the second week.
finals week
The last week of our stock investing was a disappointing one with a slight drop in net value to a final figure of $10,587. This is a total increase of $587 from our initial investment, which is an overall ROI of 6%.
On the first day of last week, our crypto investment increased by $314 for a total of $11,719, which is the highest end of the day we have achieved in our experiment. However, this was the high point, as we moved lower for the rest of the week, ending up with a total of $11,359, or a 14% ROI.
overall performance
shares
Although we started making profit from our stock investments, there were ten investments in which the initial investment was a loss, that is, about 45% of the total investment. The worst performing stock was Pfizer Inc. Which decreased from the third week onwards and ended up with an ROI of -10%. This happened when the company announced that they were doing stop development Type 2 diabetes and obesity candidate lotigliprone on safety concerns.
Rivian proved to be the best performing stock with an ROI of 88%, initially priced at $14.03 per stock, which increased to $25.51 during the month. it’s after the company announced The second quarter of 2023 was the best financial quarter in the company’s history.
cryptocurrency
On the other hand, we had a lot of luck with our crypto investments, losing only one investment, which was 13% of the initial investment. There are many reasons why it was Ripple (XRP), one being the transaction volume of XRP 90% down
The coin with the highest ROI is Solana (SOL) with an ROI of 39%, which is an increase of $389. SOL is considered a relatively stable coin with strong community support, which makes it a good coin to invest in.
Hit or Miss?
Although it is possible that bitcoin was suggested as one of the best investments because it is the largest cryptocurrency. This was actually a great crypto to invest in as the price jumped from $26k to $30k because of the news that a New, Secure, Crypto Exchange Launched with investments from Invesco and WisdomTree.
One stock we think may have missed from ChatGPT’s suggestions is Meta, the company that owns Facebook and Instagram. They have recently released a new app called Threads as part of Instagram, which is a competitor to Twitter. It was released at the perfect time after this news twitter was limiting The number of tweets that can be viewed by its users.
This is not one of the stocks ChatGPT suggested investing in, so we wanted to see what could have happened if ChatGPT had suggested investing in meta stocks. Using historical data from the previous month, we calculated that if we had invested $1,000, we would have $1,100 by the end of the experiment. This is more than we earned from the $1,000 we invested in Amazon and Apple stock.
procedure
We started asking ChatGPT about stock market opportunities. Initially, it gave a general answer to the types of industries that should be invested in and why. From these industries, we asked each to recommend specific companies. Then we sent him back a list of all recommended stocks and asked him to load up on the $10k investment.
We found that one of the suggested stocks, Waymo, is not a publicly traded business, we had to go back to ChatGPT and ask to remove this stock and add a new one. It was replaced by Johnson Controls International plc.
Getting answers about which cryptocurrency to invest in was a very easy process. ChatGPT gave us an initial list of coins, and when asked how much to invest in each it gave a general strategy for investing in cryptocurrencies. 40-50% should come from bitcoin and ethereum combined and the remaining 10-20% for each coin. We decided to put 20% in bitcoin, 20% in ethereum and 10% for the remaining coins.
