Author: Andrew Packer

Stock market strategies

The Investor Channel: FAANG Stocks Rocket Higher

Posted on by Andrew Packer

Tech stocks led the market higher in 2023 and 2024. In 2025, they’ve led the market lower. That’s typical of market selloffs. The big winners on the way up become the big losers on the way down.

But with markets now posting some up days recently, it may look like some of the risk in the tech stocks is over. And that it may be a time for investors to find a bargain amid the selloff.

In just a few trading days, many of the big-name tech stocks have led to 10% selloffs in many big names. But subsequent rallies have allowed for a sharp rebound.

What’s hitting the tech stocks hard? Most technology companies offer a service, which has been immune from tariff fears so far.

However, a change in regulatory issues could mean more rulings. European regulators have been hitting tech giants like Microsoft (MSFT) and Google (GOOG) with hefty fines in recent years. For now, it’s been treated like a cost of business.

However, tech manufacturer Apple (AAPL) has swung wildly on tariff news. It’s even had a specific, if temporary, carveout from tariffs to avoid a massive supply chain issue.

Mag 7 player Tesla Motors (TSLA) is also heavy on manufacturing. But its U.S. sales all come from manufacturing in the U.S. Demand for Tesla cars is shifting, however. And in China, the rise of cheaper EV companies could eat at Tesla’s margins.

In short, the tech space is shifting, and these companies may not be the obvious runaway winners as in years past.

 

To watch the full analysis, click here.

 

Commodities

Kitco News: Global Central Banks Continued to Boost Their Gold Reserves in February 2025

Posted on by Andrew Packer

Gold continues to be a standout asset class for investors. The metal was up over 20% in 2024, and even eked out the strong returns of the S&P 500. As stocks have faltered in 2025, gold has held up strong, with the metal topping $3,100 per ounce.

That trend looks set to continue. That’s because buying trend suggest that central banks continue to add to their physical gold holdings. And retail investors have largely stepped back from gold, for now.

In February alone, statistics show that the National Bank of Poland bought 29 tons of gold. That’s followed by the People’s Bank of China at 5 tons. The Republic of Turkey rounded up the top buyers with the purchase of three tons.

Gold has emerged as a safe-haven amid the current market uncertainty. The metal has even held up well as bond yields have swung wildly. Typically, bonds are a safe place for parking cash in the short-term.

With gold prices rising, gold mining stocks are pushing higher overall as well. The sector still looks undervalued, as the share price of gold miners has yet to catch up with prior rallies in gold itself.

Plus, while gold prices continue to rise, other assets, including fellow precious metal silver, continue to languish.

 

To see the full analysis on gold now, click here.

 

Income investing

The Compound: The 7 Best Dividend Stocks to Buy Now

Posted on by Andrew Packer

When markets falter, investors look for safety. For some, that may mean cash. Or short-term bonds. However, long-term investors tend to gravitate toward dividend-paying stocks.

These are companies with strong cash flows. They often have a long history of delivering returns to shareholders. Of the thousands of publicly-traded companies today, dozens have a history of increasing their payout for decades. That means these companies have an operating history that include the worst financial disasters.

Today’s economic uncertainty centers around tariffs and trades. Investors looking for safety should consider dividend-paying companies that aren’t reliant on trade.

For instance, telecom giant Verizon (VZ) has paid a dividend for over 40 years. With a current yield of 6.4%, it’s delivering hefty income for investors now.

Plus, with shares trading at 9 times forward earnings, it’s still a value today. And 96% of the company’s revenues come from the United States.

Utility Dominion Energy (D) has paid a dividend for a massive 92 years. And as a utility company, it generates 100% of its revenues in the U.S. Dominion currently pays a 5.4% dividend, and trades at about 15 times earnings.

Conagra Brands (CAG) reflects the fact that people have to eat. Conagra has paid a dividend for 49 years, and shares trade at 11 times earnings. That’s a strong valuation for the company’s basket of brands. Conagra gets 91% of its revenue in the U.S.

 

To see the full list of tariff and trade-safe dividend stocks now, click here.

Personal finance

A Wealth of Common Sense: Misbehaving in a Volatile Market

Posted on by Andrew Packer

Market volatility has soared in recent weeks. Typically, volatility measures how much investors expect the stock market to move on a daily basis in the weeks ahead.

With volatility elevated, it’s likely that stocks will continue to see big swings every day. That’s true even if the market doesn’t materially move much in a given week. The move in volatility is also likely to create opportunities for investors. However, it’s important to learn the right lessons.

For instance, stocks delivered some strong rallying days over the past few sessions. Consequently, some may think the market correction is over. That may not be true. Neither is it true that a down day for stocks could just be part of a further indefinite decline.

Volatility tends to lead to snap judgments based on the market’s recent moves, known as a recency bias.

In the meantime, investors often fall into the trap of confirmation bias. They may look specifically for information to support their worldview. In doing so, they discount data that may contradict their worldview.

For now, investors should take an objective look at their open positions. And determine if they’re still worth holding in the current environment. Holding great companies over the long haul tends to work out well as a strategy. Market fears will subside in time.

 

To see the full list of investor biases that can interrupt your wealth creation in a bear market, click here.

 

Economy

Bianco Research: Bonds “Center of the Universe,” Investors Will Want to Stock Pick

Posted on by Andrew Packer

The stock market’s recent selloff has spilled over into other asset classes. The most important asset class is bonds. Typically, bonds move far less than stocks. But they also represent more capital, and capital that investors want to preserve rather than grow.

The selloff in the bond market has pushed interest rates higher. That’s good news for bond buyers. For existing bond owners, it indicates a selloff. For now, the bond market move suggests caution across all asset classes.

Meanwhile, tariff news is leading to a volatile stock market. It’s not just one of rallies and declines, but of investors picking and choosing potential winners.

That’s in stark contrast to the past two years, when investors could simply buy the index, and benefit from rising stocks. Especially with the heavy weighting of the rallying Magnificent Seven plays. With that trend shifting, investors need to think more defensively.

That could bode well for sectors such healthcare, which has been a strong winner so far in 2025. Utilities tend to fare well in defensive markets also, and offer investors bond-like income returns.

Given that the tariff fears may resolve as quickly as they flared up, investors should think defensively now. But staying out of the stock market could mean losing out on strong potential returns.

 

To see the full interview, click here.

Stock market strategies

Tastylive: 3 Ways to Trade Options Without Picking Direction

Posted on by Andrew Packer

Traders have many ways to play the market. Most traders who expect a big directional move gravitate towards options. That’s because options allow investors to control a larger amount of shares compared to buying stock.

Directionality can mean a big move higher or lower. A trader who thinks a stock will fall after earnings can buy a put option as a directional bet. Or a call option if they think shares will move higher.

However, the market often has sideways moves. Directionality doesn’t work all the time. Or the market loses its predictable patterns and channels of trading, like in the recent selloff.

That’s where neutral options trading strategies come into play. These strategies can make investors money whether stocks go up, down, or sideways. This is known as being “directionally neutral.”

An options strangle use put and call options equally far from an at-the-money trade. These strangles can see one leg profit from a big move in one direction. However, that comes at the cost of a loss in the other leg. Varieties include price-neutral strangles, equidistant strangles, or delta-neutral strangles.

This strategy won’t lead to big swing profits, but it can provide options traders with consistent profits. That can come in handy during times of market uncertainty, when big daily swings occur.

 

 

To see a full breakdown of neutrality options trades, click here.

Income investing

Dividend Growth Investor: Two Recent Dividend Increases and Five Future Dividend Increases

Posted on by Andrew Packer

Despite a rough week for markets, stocks are just one part of the investment puzzle. That’s because stocks are a fractional ownership of a business. And many businesses continue to hold up well.

Many companies start to reward their shareholders over time. That reflects less capital needed for growth, and a steady, if not increasing, flow of cash from operations. The reward can come in dividends or buybacks.

Dividends offer investors cash, which they can decide how to reinvest or spend. A handful of companies are capable of consistently growing year-over-year, sometimes for decades at a time.

Recently, two companies increased dividends for over a decade.

One of those companies is Bank OZK (OZK), providing traditional retail and commercial banking services out of Arkansas.

Bank OZK just raised its dividends for the 29th consecutive year. Over the past 10 years, dividends have increased at an average rate of 12.9%, far above the rate of inflation.

Amid the recent market fear, shares have slid by nearly 15% in the past month. However, Bank OZK trades at less than 7 times earnings. And it trades at 0.8 times its book value. That suggests that shares are at least at a 20% discount to its book of loans.

The current market fear has sent nearly every company down. Fortunately, investors can use tools like dividend growth to screen for long-term buys.

 

To see the other companies raising their dividend payouts now, click here.

 

Economy

The Intellectual Investor: Tariffs, Debt, and a Recession by Design

Posted on by Andrew Packer

Is President Trump trying to engineer a recession? Some think so. By vastly increasing tariffs, markets have sold off at a pace last seen during the Covid-induced recession in 2020.

That seems at odds with Trump’s prior claims about focusing on a strong economy and creating American jobs. So what gives? More lies at stake, and it ties in with other initiatives the Trump team is undertaking now.

Currently, about $9 trillion of the $37 trillion national debt needs refinancing by the end of 2026. By creating fear and crashing the markets, interest rates should come down. That will lower the cost of refinancing that debt coming due. Every percentage drop can save the U.S. government billions of dollars in interest payments to bondholders.

Meanwhile, tacking the deficit with the spending cuts from DOGE, the government’s cash flow improves. The cuts aren’t enough to create a surplus, but it’s a strong shift from running massive $2 trillion annual deficits.

Plus, with government spending cuts, GDP looks likely to decline, and unemployment to rise. By leaning into things now, any economic slowdown can shift towards a more bullish outcome.

Investors don’t care for this strategy, as seen with the recent selloff. And engineering a recession runs a dangerous gambit that may simply lead to a recession.

 

To see the full analysis, click here.

 

Personal finance

Oblivious Investor: What to Do During a Stock Market Downturn

Posted on by Andrew Packer

In 2023, markets soared over 20%. In 2024, they did it again. Investors got complacent. Meanwhile, the return of President Trump to the White House was likely to lead to more market uncertainty. Investors have now had that in droves.

Since peaking in February, stock markets hit a bear market correction on Monday before bouncing higher. That’s one of the fastest moves from bull to bear on record. With stocks in a downturn, investors have a few key things to do now.

First, investors who are uncomfortable with the current market selloff should check their positions.

Some stocks are great in bull markets, but terrible in bear markets. Too many growth stocks could mean worse performance as stocks fall.

So, investors should make sure they own both growth stocks and defensive stocks.

Second, markets will recover in time. We don’t know how long that will take. Or if things will get worse before they get better.

Investors who have some cash on the side may want to move some of that in and take advantage of the selloff in stocks today. Investors also have a few days left to make contributions to retirement accounts for the 2024 tax year.

Meanwhile, in taxable accounts, it may make sense to rebalance a portfolio here. And taking a few losses, while uncomfortable, can mean having a tax-loss for 2025’s taxes.

 

To see the full checklist of what investors should do in a market downturn, click here.

 

Economy

The Compound: Former Trump Trade Official on What’s Really Happening

Posted on by Andrew Packer

Markets have now had over a week to digest President Trump’s tariff plans. It’s clear that Wall Street is highly uncertain, as evidenced by declining markets, wild swings, and high volatility.

However, as odd as it may seem, there is a plan out of Washington D.C. that suggests the tariff pain will prove short-lived. And once it’s over, better trade deals and tariff rates could expand, not reduce, global trade.

The latest tariff fears are simply a beefed-up version of the 2018 tariffs.

There’s a heavy emphasis on hitting hard against China. The country’s low-cost manufacturing has benefited Americans as consumers. But it has arguably also been the biggest beneficiary of America’s collapsing factory jobs.

The reciprocal tariffs ensure that all trading partners feel some pain. And that they can and should propose better trade deals. That could include a flat tariff rate between countries. Or it could mean a removal of trade barriers.

That’s in contrast to the current system. The U.S. has low to no tariffs on imported goods while paying much higher tariffs on average for exports. The jump in rates still leaves the U.S. charging less than what other countries charge for American goods.

For now, the tariff situation is putting Washington policy in charge of the financial markets. Until that changes, economic uncertainty and wild market swings are likely.

 

To see the full interview, click here.