Can ChatGPT beat the Stock market?

Well I’ve been running a little experiment for the last week with my Trading 212 account to see how AI stock picks would perform, and it’s gone surprisingly well so far.

I wanted to invest in China and thought I’d let ChatGPT do all the heavy lifting for me and then I would back this up with my own research based on it’s suggestions and felt no need to change anything.

It created a rounded portfolio for me, I checked each one out and added the ticker to their own pie in Trading212 and then funded it with £100. I then used the auto balance balance feature in Trading212 to distribute the funds accordingly.

After 5 days this pie had grown by 5% which I was quite impressed with and so I chucked in an additional £90 and performed another auto balance. The pie is showing a £10 increase at 5% over the past 5 days.

Obviously, this is not financial advice and you run the risk of losing everything and should always do your own research when investing, but for me so far, things have gone better than I expected. And in the long term cn ChatGPT beat the Stock market? That is something which we won’t know for a good 15 years, which is how long I plan on using this pie for.

My Question to ChatGPT: – If you could build a dream team of the top 10 stocks on the chinese market, what would they be right now?

ChatGPT said:

Building a dream team of the top 10 stocks on the Chinese market right now would focus on companies benefiting from China’s economic recovery, technological advancement, clean energy initiatives, and consumer demand. Here’s a selection of top Chinese stocks that are showing strong potential based on growth forecasts, market trends, and their sectors:

1. Alibaba Group (BABA)

Sector: E-commerce, Cloud Computing
Why: Alibaba remains a dominant player in China’s tech ecosystem, with significant growth potential in cloud computing and consumer spending.

2. Tencent Holdings (TCEHY)

Sector: Social Media, Gaming, Fintech
Why: Tencent is a leader in gaming and social media, with opportunities in digital payments and fintech through its WeChat ecosystem.

3. NIO Inc. (NIO)

Sector: Electric Vehicles
Why: As a pioneer in the EV sector, NIO is benefiting from China’s push toward green energy and electric vehicles.

4. BYD Co. Ltd. (BYDDF)

Sector: Electric Vehicles, Batteries
Why: BYD is a leader in EV production and battery technology, backed by Warren Buffett’s Berkshire Hathaway.

5. XPeng Inc. (XPEV)

Sector: Electric Vehicles
Why: XPeng is innovating in autonomous driving and EV tech, benefiting from rising domestic demand for EVs in China.

6. Li Auto Inc. (LI)

Sector: Hybrid SUVs, Electric Vehicles
Why: Known for its hybrid SUV models, Li Auto has seen rapid revenue growth in response to consumer interest in clean energy vehicles.

7. Meituan (MPNGF)

Sector: E-commerce, Food Delivery
Why: Meituan dominates China’s online food delivery and local services market, showing continuous growth in consumer demand.

8. JD.com (JD)

Sector: E-commerce, Logistics
Why: JD.com is a key player in e-commerce with strong logistics infrastructure, poised for growth as consumer spending rebounds.

9. Pinduoduo (PDD)

Sector: E-commerce
Why: Known for social e-commerce, Pinduoduo has seen explosive growth by targeting lower-tier cities and rural consumers.

10. China Mobile (CHL)

Sector: Telecommunications
Why: As the largest telecom provider in China, China Mobile is well-positioned to benefit from the 5G rollout and increased digitalization.

These stocks represent a diversified mix of sectors, from e-commerce and tech to clean energy and EVs, reflecting the key drivers of China’s economic growth in 2024. This list balances well-established giants like Alibaba and Tencent with high-growth sectors like electric vehicles (e.g., NIO, XPeng, and BYD).

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You may also like to read this article and how to use AI to create a second income.