ChatGPT recommends a list of recession-proof assets and commodities, including stocks, bonds, and gold, but not Bitcoin.
Well-known gold bug and Bitcoin critic Peter Schiff has once again slammed the leading cryptocurrency for not making the list of ChatGPT’s recommended recession-proof assets.
In his recent swipe at Bitcoin, the CEO of American stockbroker and asset manager Euro Pacific Capital said that artificial intelligence (AI) chatbots are smart enough to recommend gold and other investment vehicles instead of Bitcoin.
ChatGPT’s recession-proof asset
Schiff made the statement in a tweet Thursday while citing an article from Newstrail that highlighted the breakdown of ChatGPT’s recommended recession-proof portfolio.
According to the report, the robot recommends that investors allocate up to 40% of their funds to bonds as they carry negligible risk compared to other assets. The AI tool further recommends allocating 30% of funds to defense stocks as they are generally less affected by economic cycles.
Gold and other precious metals followed closely on ChatGPT’s list, with a recommended allocation of 20%. This exceeds the percentages recommended by famous gold bugs such as Ray Dalio and Schiff. The chatbot points out that precious metals, especially gold, are a safe haven during economic collapses.
Finally, the AI tool recommends allocating 10% of funds to cash as it allows investors to take advantage of buying opportunities or cover unexpected expenses.
Schiff praises ChatGPT
Commenting on the report, Schiff noted that ChatGPT’s exclusion of Bitcoin from its recommended recession-proof assets suggests the AI is “really smart.”
An outspoken critic of Bitcoin, Schiff has often warned investors to steer clear of the nascent crypto market. The Euro Pacific CEO believes Bitcoin does not fit the inflation hedge narrative that the cryptocurrency world has bestowed on digital assets.
As Bitcoin prices surged 20% to $25,000 last month amid the U.S. banking crisis that led to the collapse of several banks, Schiff reiterated that BTC’s surge in price does not mean it is a better inflation hedge than gold. The stockbroker believes that, unlike Bitcoin, the precious metal has proven itself repeatedly over the centuries.
