By skyforbes 
OpenAI chief executive Sam Altman says that “GPT-5” is supposed to be like talking to a PhD-level expert. Let’s get some insights…
Motivation
Stock market crashes are notoriously difficult to predict. So, I tried asking the latest version of ChatGPT and Claude AI whether I need to worry about a bubble in AI shares in general to pro-actively speculate crash.
Primary Question: whether I need to worry about a bubble in artificial intelligence (AI) shares?
What ChatGPT said (Excerpt)
What Claude said
Second Question: if an AI bubble’s about to cause a stock market crash?
What ChatGPT said (Excerpt)
What Claude said (Excerpt)
What to watch for — My “Hunch” (1 among my other portfolio stocks)
Compass Group (LSE:CPG) is a FTSE 100 contract caterer. It’s not an obvious AI casualty, but if automation drives staff reduction, the firm could face lower demand from workplaces.
The company however, has an incredibly strong competitive position. It’s the biggest operator by far and its scale gives it an advantage when it comes to negotiating prices with suppliers.
What impresses me most is that the firm’s been strengthening its position in an unusual way. It’s been monetizing its position by letting competitors use its platform in exchange for a fee.
This generates extra cash while dis-incentivising rivals from trying to build a competing operation. I think this makes it a brilliant move in terms of securing its long-term position.
How I’m preparing
Given this, I’m sticking to my usual approach for being ready for a stock market crash. Part of this involves having an idea of which shares I want to buy if prices go down sharply.
What I look for is a business that’s going to emerge from a downturn in a stronger position than it was in before. And that means a company with a strong competitive advantage.
When things get tough in an industry, it’s often the case that the weakest firms get hit the hardest. So stronger operators find themselves in an even better position when things recover. That means looking for businesses with big competitive advantages. And there’s one in particular from the UK that’s at the top of my list.
Crash/Risk opportunities — Summary
AI models wasn’t able to tell me much about whether the next stock market crash is imminent. That might be because figuring this out is just too hard even for the financial guru’s.
Given this, my plan is to make sure
→ I’m ready with a list of stocks I want to buy whenever the next big drop in share prices comes. And Compass Group’s one of these. Right now, the stock’s about 10% above my target price. But I expect it to be more resilient than its peers in a big downturn and that makes it an ideal candidate to consider in a crash.
Disclaimer
I have no position in any of the shares mentioned. The views expressed here are solely just my pure intuition and cross-validation with AI model’s outcomes. It is in now-way definitive and not at all in any form the suggested recommendations.
References