Bond yields moved lower last year, ahead of the Federal Reserve’s commitment to cut interest rates. Yet, even as the Fed lowered rates by a full percentage point, bond yields have ticked higher. In theory, rising bond yields are a sign of a healthy economy. That’s at odds with declining inflation and rising fears of a recession amid renewed trade wars. So, investors may want to bet that when bond yields change, it’ll be for lower yields. That means today’s investors can lock in relatively higher yields with bonds. It doesn’t matter if those bonds are junk bonds, commercial-grade cred...

Consumers may be starting to pull back on spending, either from rising prices on goods resulting from tariffs, or simply from rising uncertainty about tariffs and the overall economy. However, breaking down consumer trends, one pattern emerges. Simply put, consumers aren’t ready to cut back on entertainment spending quite yet. That includes spending on media, particularly for streaming services. With a relatively low monthly cost, that may be one of the last places consumers cut back on. This trend can clearly be seen with the big earnings beat from Netflix (NFLX). The company report...

Investors looking to stay invested in volatile markets should think defensively. One way to do that is by investing in insurance companies. These firms are heavily regulated, but don’t carry the risks in a downturn that the banking sector has. Insurance premiums tend to get paid no matter what. And while there’s usually some event that causes a spike in claims, that ends up being temporary over time. For instance, Travelers (TRV) beat estimates on first-quarter earnings, even as the company had a substantial loss from its exposure to California wildfires. Travelers was up on its l...

The souring stock market has created an environment where many stocks are sold off even if new developments don’t specifically impact them. While the high near-term uncertainty makes for a poor investing environment, it won’t always be this way. When markets do recover, great companies will trend higher. Companies that are in an oligopoly space with few competitors should fare even better. Investors who pick up shares of these companies during current fears can likely see market-beating returns. For instance, the airline space has dropped heavily following fears of a slowdown in cons...

Since the start of the year, health care has been a leading sector for the economy. It’s a defensive sector, and tends to perform well over time. What’s more, it tends to have some insulation from global trade, providing some safety amid the current tariff fears. As long as this sector continues to lead, investors can likely see reasonable returns on health care stocks. And it will likely provide more stability compared to other sectors getting whipsawed right now. In the health care space, Johnson & Johnson (JNJ) is a steady player. JNJ just beat on its latest earnings buy about...

While markets remain volatile, investors can take advantage of the market’s big swings. That includes targeting and buying shares of high-quality, industry-leading companies when the market is down. With earnings season underway, companies can show how they were faring going into the recent uncertainty, which may point the way towards how they’ll fare once this uncertainty ends. That could lead to great returns for investors who buy great companies that have been hit hard in this selloff. For instance, Wall Street investment bank Goldman Sachs (GS) is profiting from a surge in tradin...

The fear of a recession has increased in recent weeks. Investors are uncertain over the impact of tariffs and trade policy on the economy. However, investors who buy companies that largely provide goods and services domestically should hold up far better. Most of today’s big trends still remain in place. As long as that holds, patient investors who buy great companies playing to long-term trends should be able to make good returns buying sold-off stocks today. For instance, utility companies tend to be defensive players under most market conditions. With the rise of AI and data cente...

With stock market volatility on the rise and likely to persist, investors should think more defensively. That means looking for great companies to buy on big down days for the market. It can also mean taking a more income-oriented approach. That can include companies with low to moderate dividend yields with a history of increasing that payout over time, or companies with a high current yield. Either could help boost investor returns in today’s jittery markets. Plus, dividend stocks should perform well should interest rates move lower, as dividend yields will look more attractive com...

The tariff whipsaw in markets may be past the worst of the pain, but it’s not over yet. However, there’s a clear sign that many companies will be increasing their domestic manufacturing to avoid the dangers of rapid change in tariff policies. That could bode well for many American manufacturers, particularly those who produce higher-end technologies. And owning shares of these companies could lead to outperformance as they see higher growth. That includes industrial giant Honeywell (HON). The industrial conglomerate has a variety of products, and its industrial automation tools can h...

Investors have had a rocky year. Stocks touched bear market territory within just a few weeks of hitting all-time highs back in February. While many names have been hit hard, a few sectors have been standouts in this market carnage. One big performer here is the healthcare sector. These companies were generally laggards during the market’s big run over the past two years. Today, that’s reversing. Health insurers also received notice that Medicare payment rates would increase. That’s providing a tailwind that could help these companies continue to outperform the overall market. Amo...