My New Year’s resolution was to go for growth in 2026 by taking on more risk to achieve greater rewards — but there’s calculated risk and foolish risk, and I’m looking for investments based on the former and that avoid the latter.
Naturally, I asked ChatGPT which investments are too risky for this year, and its response was simple yet indisputable. “Anything that needs perfect conditions to work in 2026 is risky. Rates are still restrictive, liquidity is selective and markets are far less forgiving than 2020-2021,” it explained.
More specifically, it advised against the following foolishly risky investments.
Highly Leveraged Speculative Assets
Stating that “volatility + higher-for-longer rates = forced liquidation risk,” the artificial intelligence (AI) chatbot advised steering clear of the following kinds of investments because they “decay fast in sideways or choppy markets (which 2026 likely delivers).”
- Leveraged exchange-traded funds (3x tech, crypto, volatility products)
- Margin-heavy strategies
- Options-only portfolios
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Unprofitable ‘Story Stocks’
Stating, “In 2026, cash flow beats narrative,” ChatGPT warned that “capital markets aren’t bailing out bad balance sheets anymore” and that “dilution risk is real and frequent.”
Therefore, it warned against these kinds of investments:
- Pre-revenue AI startups
- Small-cap biotechs with no Phase 3 approval
- Electric vehicle (EV) or clean-energy firms burning cash.
Crypto Without Clear Utility or Adoption
Generally speaking, digital assets are riskier than traditional investments, but ChatGPT is especially skeptical of these kinds of holdings in 2026:
- Meme coins
- Thinly traded altcoins
- DeFi tokens with no revenue model.
So what about bitcoin and ethereum? ChatGPT labeled them “still volatile, but not in the same risk bucket.”
Peer-to-Peer Lending and Private Credit Platforms
The chatbot likened lending to shaky borrowers in pursuit of outsize interest payments to yield chasing, stating plainly, “High yield ≠ high quality.”
Here are some of the examples it included:
- Peer-to-peer (P2P) consumer loans
- Small-business lending platforms
- Non-transparent private credit funds.
Its reasoning was that “default rates rise late-cycle, liquidity is often an illusion and underwriting quality varies wildly.”
Illiquid Private Deals for Non-Accredited Investors
P2P lending isn’t the only alternative investment that ChatGPT frowned upon for 2026. It also cautioned against similar outlets that tie up your money for extended terms.
Here are some of the examples it included:
- Crowdfunded startups
- Fractional real estate syndications
- Private equity-lite offerings.
The platform stated that these are too risky because they offer “no exit when you need one, valuations lag reality and fees quietly eat returns.”
Editor’s note: This article is for informational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of principal. Always consider your individual circumstances and consult with a qualified financial advisor before making investment decisions.
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This article originally appeared on GOBankingRates.com: I Asked ChatGPT Which Investments Are Too Risky for 2026: Here’s the List
