In a volatile and changing macroeconomic landscape, DIY investors may have trouble finding under-the-radar investment opportunities that suit their financial needs and can grow their wealth. But the artificial intelligence tool ChatGPT offers a new way to uncover hidden investment gems such as emerging markets and industries, undervalued stocks, and alternative assets.
The key is knowing how to prompt it.
Start With Smart Prompts
ChatGPT can dig deep into the financial nitty gritty when guided well. Use prompts like these to start your research:
- “What are some emerging industries with high growth potential in the next 5–10 years?”
- “List undervalued public companies in [sector] based on traditional value metrics.”
- “What are alternative asset classes that are gaining traction among institutional investors?”
- “Which markets might benefit from shifting supply chains due to geopolitical trends?”
Follow up with more targeted questions about specific types of investments. For example:
- “Which [sector]-related small-cap stocks are trading below book value?”
- “Which undervalued NYSE stocks have buy-and-hold potential?”
- “What credit risks does [corporation] have, and how do they affect their bonds?
- “What is the price trend for [company] and the outlook for prices over two years?
These prompts can help surface ideas that, even for seasoned investors and industry professionals, are often not top-of-mind.
Next, Fact-Check the Responses
Artificial intelligence is known to hallucinate false financial data up to 13.8% of the time. So, it is imperative to fact-check the information you get through your prompts.
1. Validate ChatGPT’s ideas using up-to-date sources.
- Use financial databases or platforms like Yahoo Finance, Morningstar, the U.S. Securities and Exchange Commission’s (SEC) Edgar, and Federal Reserve Economic Data (FRED).
- Review specific company filings to vet earnings, debt levels, P/E ratios, and other financial data presented as fact.
- Google Trends and investor research from your investment/asset management firm can also supply data to confirm or refute ChatGPT’s insights.
2. Once you check ChatGPT’s work, follow up with a human financial advisor. They can help evaluate the information you got using ChatGPT and whether a potential opportunity aligns with your financial needs and investment strategy.
“AI can be a powerful co-pilot, but it’s no substitute for a plan grounded in self-awareness and long-term thinking,” warns Deedee Baze, the founder of DeMar Consulting Group, a financial planning, investment advising, and tax planning and preparation firm.
3. Understand ChatGPT’s drawbacks. It’s a supplement to, not a substitute for, advice from a financial professional.
While it can provide a much-needed research boost, it can’t account for your personal circumstances and assess your unique risk tolerance or investment goals.
Baze emphasizes, “A financial advisor can add behavioral coaching, strategically placing investments in taxable and tax-advantaged accounts to maximize returns long term and help develop an efficient withdrawal strategy to help reduce tax liabilities. So instead of turning to AI alone, think about getting a second opinion or using a hybrid model to get the best of both worlds.”
In today’s market, knowledge is leverage. ChatGPT offers individual investors an edge—but only if they know how to use it wisely. Whether you’re exploring green energy startups or overlooked REITs, the right questions may lead to valuable potential discoveries for your portfolio. Be curious and ask away, but don’t forget to confirm the answers provided and keep your financial advisor in the loop.
