I asked ChatgPP to get 2 cheap actions for an empty ISA, I have both!

I am anxious to buy some cheap actions for the actions and actions of this year, and I wondered if ai could help. And I have played with chatgpt enough to know its limitations, but I was curious to see what I would throw.

I have made the habit of taking the cheap price Ftse 100 Shares, particularly those that pay high dividends. So I shouldn't have surprised me to see that Chatgpt recommends two actions that I already have. But I was.

<h2 class="wp-block-heading" id="h-ai-sees-life-in-legal-amp-general-shares”>He sees life in legal and general actions

The first was Legal and General Group (LSE: LGEN). I bought the insurer and asset manager three times in 2023, when it really was cheap, with a price ratio (p/e) of six or seven. Chatgpt said today is cheap, citing a nine -time p/e.

This highlights the first problem of using a robot to select actions. Chatgpt does not always land in the most recent information. The legal & general P/E has shot up to 33 times. That follows two acute and successive drops in earnings per share, from 34.19PA 12.84p in 2022, then only 7.35p last year my figures, not those of Chatgpt). Then it is no longer cheap.

The price of legal and general shares has increased only 0.75% in the last year, and 2.4% in five. At least it remained stable during recent volatile weeks.

This suggests that it has defensive sand and offers a brilliant attraction: a huge yield of 8.25%. What highlights chatgpt. It could hardly get lost.

My slightly little reliable friend also said that legal and general “Benefits of an aging population of the United Kingdom and a growing demand for retirement solutions”But it has “The low performance recently due to the volatility of the bond market and the uncertainty of the interest rate”.

There are no discussions with that. ai also warns “Regulatory Challenges” But it always does that.

I think Legal & General is still worth considering for income applicants. It could be on demand when interest rates fall, and the cash and yields of the bonds are directed south. But management needs to promote those profits.

Taylor Wimpey's actions look good

The second cheap selection of the United Kingdom of Chatgpt was Housebuilder Taylor Wimpey (LSE: TW). He highlighted a p/e around eight o'clock, but I'm seeing 13.3 times. Oh, well, it is closer than the previous one.

I bought Taylor Wimpey in 2023 about six or seven times the profits, and my shares increased 40% in a short time. The markets thought that housing builders would benefit from work plans to build 1.5 million homes in five years. Mistaken.

The price of Taylor Wimpey shares decreased 18% for 12 months and 42% in five years.

As the chatgpt points out: “Housing builders have had problems due to high mortgage rates that affect affordability”while sticky inflation has increased the costs of material and labor.

I would add that the national insurance linked to the budget and the minimum wage increases, which are due in April, will be added to the price load.

Once again, Taylor Wimpey should obtain an elevator when inflation and interest rates show significant falls. That should increase sales and prices, reduce costs and tempt investors by reducing cash yields and bonds. With a final yield of 8.3%, Taylor Wimpey should make hay when that happy scenario lands. Patience is required.

It is still worth considering, for income applicants who can withstand a short -term risk risk. I will continue judging with Chatgpt (seterically), and I hope that the next time I lean some cheap actions that I do not have.