This Market Dog Is Showing the Potential to Lead This Year
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 ...
Read More About This
Read More About This
This High-Flying Group of Stocks Gets a Much-Needed Pullback
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 ...
Read More About This
Read More About This
A Simple Way to Play Today’s High Bond Yields
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 ...
Read More About This
Read More About This
The Face of the AI Revolution Is Still Delivering Results
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 ...
Read More About This
Read More About This
This Oversold Sector May Be Due for a Rebound
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 ...
Read More About This
Read More About This
Wealthy Household Spending Remains High In This Space
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 ...
Read More About This
Read More About This
This Underperforming Sector Could Hold Up Well in 2025
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 ...
Read More About This
Read More About This
The AI Buildout Bodes Well for Networking Players
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 ...
Read More About This
Read More About This