Markets are off to a challenging start for 2025. Yet some asset classes are faring better than others. The commodity space, which fared relatively well in some respects, continues to thrive. For 2025, however, the early winner out of the gate has been the energy space. Oil prices have been pushing higher. That’s due to a combination of fears, including another round of sanctions against Russia. Further gains look likely in 2025. Given the prospect for strong returns after poor performance in 2024, investors should consider upping their holdings to energy plays. It’s also likely to ho...

In any industry, some consolidation is normal over time. It’s also healthy when the largest players in the industry make notable acquisitions. That’s because acquiring smaller companies can be a good driver for growth down the line, and offer a smaller company the financial strength of a larger one. Over time, industries tend to come down to a few major players, who often pick up promising up-and-coming growth plays. That looks like the case with healthcare giant Johnson & Johnson (JNJ), which recently entered into an agreement to buy mental health therapy company Intra-Cellular ...

One market strategy is known as the “Dogs of the Dow.” By buying the five worst-performing stocks in the Dow 30 at the start of a year, investors have historically outperformed the market. That’s due to a concept known as “mean reversion.” Simply put, a stock that underperforms in one year is likely to outperform in the next, averaging out to a more typical return. This strategy can work with other beaten-down stocks. That includes Walgreens Boots Alliance (WBA), which was a poorly-performing stock last year, and even got kicked out of the Dow. However, shares just had their best one...

Nothing ever moves in a straight line. Investors who think they’ve missed out on a trend can likely have several opportunities to buy in, especially for a trend with years behind it. The AI trend of the past few years has seen a number of pullbacks, including the market’s 8.5% peak-to-trough decline in 2024, and a 10% pullback in 2023. But a new trend is emerging that’s much more fast-moving. That trend is quantum computing. Companies focusing just on this technology took a massive dive earlier this week, following comments from Nvidia’s CEO about how long truly quantum computing wou...

The bond market has disconnected from the stock market in recent months. Despite the Federal Reserve cutting interest rates a full point, bond yields have ticked higher. Some see the 10-year Treasury, the bellwether for the bond market, trending towards a 5% yield. That’s not too much further from its current level near 4.7%. And it suggests that most of the bond market’s move higher may have already occurred. If that’s the case, now may be an ideal time to lock in relatively high bond yields. Should rates move materially lower, bond holders will see the price rise as yields drop. An...

Investors love seeing the big growth behind the rollout of generative AI. But after two years of rallies in the big-cap stocks, concerns are mounting about whether or not these companies can keep up big growth. While growth is likely to slow, new iterations of technology will likely ensure above average growth continues as new AI programs are developed, data centers are created, and as hardware demand remains robust. That’s why tech giant Nvidia (NVDA) could still have a great year, adding to massive gains. Nvidia just unveiled its latest Blackwell cards, and unveiled an AI supercomp...

While the stock market remains near all-time highs, some sectors have fared much better than others. Tech stocks tend to be big winners in most years, but even within the tech space, a few sub-sectors have fared well compared to others. Quantum computing stocks have soared in recent weeks, thanks to bullish news from that sector. But solar technology stocks have lagged, reflecting concerns over a pullback in subsidies. That concern may be creating a buying opportunity today. Even if solar subsidies are scaled out, that will take years to play out. And solar technology continues to im...

Consumer tastes are shifting, and lower-income consumers may have to cut back on big spending this year amid a rise in credit card delinquencies. For higher-income homes, some areas won’t see much of a cutback in spending at all. The most likely place to hold up is with fine dining, even fine at home dining. Upper-income homes continue to spend well on high-end menu items. That bodes well for premium ingredient providers. One such player is Chef’s Warehouse (CHEF), which distributes higher-end food items to restaurants and upscale stores, as well as an online portal for direct sales....

Behind the overall stock market numbers, many individual sectors move in different ways at different times. Some sectors tend to be runaway winners some years, but are highly cyclical and trend lower in others. Other sectors tend to be steadier, and could hold up well if the overall market has a poor year. Looking to 2025 and the market’s early struggles so far, investors may want to look for safety in an underperforming space. That space is the restaurant industry. While rising costs have kept a lid on the sector, it’s one area where consumers are still willing to go out and spend. ...

AI trades have helped push the market significantly higher since the release of ChatGPT in late 2022. Chipmaker Nvidia (NVDA) has dominated the conversation, but other necessary components for AI hardware and software have been, and will likely remain, winners in 2025. One key hardware component relates to networking. AI programs need multiple pieces of hardware and software to work, and networking is critical for unleashing an AI’s full computational power. That’s why a networking company like Marvell Technologies (MRVL) could continue to perform well in 2025. Shares ended 2024 up n...