Investors remain concerned about a slowing economy. Inflation and unemployment have risen in recent weeks. While still off their highs from the past few years, it’s possible that the economy could slide further, even into a recession. For that scenario, investors don’t need to cash out or go to bonds, where they may still get hit by rising interest rates. Rather, it makes more sense to buy an industry leader with a track record of holding its value in a recession. That company isWalmart (WMT). The retailer was one of two companies in the Dow to post gains in 2008. And they held up we...

The market’s love of AI stocks has helped lead to a strong rally this year. However, investors have largely poured money into large-cap chipmaking stocks as a way to play that trend. Doing so overlooks companies that can see big improvements in productivity and returns by embracing companies using AI software themselves. Once the market figures out the opportunity at the software level, which doesn’t involve the expenses of producing physical hardware, returns could take off. One leader in the AI software space isSalesforce (CRM). The company just updated on its Einstein AI software ...

Investors can often get caught up in tech trends before they move past the drawing board. That can lead to some stocks getting overvalued, and others getting undervalued. In the chipmaking space, companies developing AI chips have seen all the attention. But existing chipmakers that can still deliver critical chips outside the AI realm can also be valuable. And buying them now may give investors an edge going into the end of the year. For instance, wireless communications chip companyQualcomm (QCOM) has been sliding in recent weeks. But the chipmaker will continue to be the supplier ...

Investors don’t like uncertainty. They tend to give a company a lower valuation when its future outlook appears grim. That could occur for a variety of reasons, such as a series of poor earnings reports. Or there could be some kind of tax or legal overhang on shares. Resolving those issues could benefit shares. Besides providing an immediate boost, it could also set up a stock for a longer-term move higher. Investors who buy after the uncertainty immediately disappears can still see great upside. Grocery store chainKroger (KR) reported that it’s paying $1.2 billion to settle is Opioi...

With stocks showing some seasonal weakness, investors may want to turn from volatile big-name companies near their highs. Instead, it may be time to look at stocks that are well off their highs, and could be set up for a strong year-end rally. Some companies in tech fit the bill. With the market’s interest in artificial intelligence-related stocks, the big winners could come from other tech trends that are still unfolding. For instance, this could be the first year that over half of all new electricity generation comes from solar power. Yet many companies developing and rolling out s...

Most investors playing a tech trend tend to look for the companies that most directly play to that trend. For tech stocks, that may mean owning chip companies or software companies. However, a powerful trend can impact multiple industries. And investing in industries implementing new technologies before they see a benefit can lead to great returns. The trick is to look at the adoption of these disruptive technologies when the market is still focused elsewhere. For instance, self-driving cars are still a concept largely on the drawing board. While that sounds like something out of Sil...

When a trend is hot, owning any company related to that trend can lead to big gains quickly. But when the trend shifts, a company can fall out of favor as well. Some trends occur just once. Others are more cyclical. Targeting cyclical trends when they’re out of favor can lead to great returns. When the cycle turns, it can lead to life-changing profits. Especially when they relate to tech-related trends. For instance, electric vehicles are a top trend. But stocks related to them can shift in and out of favor depending on other trends. That gives investors a chance to buy into this gro...

The financial sector is dominated largely by banks, but there are other niches in the space that can be a better place for investors. That’s because bank stocks can see massive declines during credit events. Or if a bank goes under, the stock can become worthless. That’s why other parts of the financial sector look reasonable. Many tout the insurance space. But asset managers are often an overlooked play. Asset managerBlackstone (BX) is one such player, although it may be better known now that it’s being added to the S&P 500. Asset management companies tend to grow massively d...

Markets tend to move in trends. Since bottoming out late last year, the trend has been higher, even with a few hiccups along the way like the drop in early August. With stocks trending higher, last year’s big losers have gained more ground than average. That trend will likely continue as well. That’s good news for investors looking to catch up this year who may have missed out on the first part of the market rally. The best-performing stock this year in the Dow has beenSalesforce (CRM). The sales software management company has been performing strongly, and looks likely to continue, ...

Investors tend to suffer from a “home country” bias. They tend to overweight positions in assets located in their own country, and fail to sufficiently diversify internationally. There are plenty of markets that offer better values than the U.S. market, even adjusting for political and currency risks. And in those markets are plenty of industry-leading companies that can provide great returns for patient investors. Especially those who buy unloved sectors. One simple place to start internationally is withUBS Group (UBS). The Swiss-based international bank just reported a record profi...