
Layoffs Remain a Mixed Bag, But This Company Could Benefit from Streamlining
When it comes to the economy, layoffs are bad. When it comes to a company undergoing layoffs, the result can be a bit more mixed. A company may need to streamline to improve profitability, or simply over-hired during a boom. Or it could be in a long-term decline. Investors who can determine what a company’s layoffs mean may stand to profit. And the market’s initial reaction to layoffs can generally give a hint as to what happens next. For instance, investors cheered ...
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Companies Delivering Value Can Build Gains in This Market
Investing has gotten a lot more challenging over the past few weeks. Rising economic uncertainty makes it difficult for companies and even individuals to make long-term plans. That could mean a pullback in spending, particularly on high-value items. But it also means that more may be spent on smaller, more impulsive purchases that act as little luxuries. And that could benefit some companies strongly in the quarters ahead. One little luxury right now is dining out – or ordering food for delivery ...
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Strong Margins Make One Big Tech Play Worth Buying During This Market Dip
Market volatility and fear may still be elevated, and might be scaring some away from this market. But for long-term investors, that’s more likely a gift. That’s because market pullbacks tend to bring down nearly all companies. And that creates opportunities to buy great companies at a reasonable price. That even includes some of the big tech companies that have been responsible for the market’s outperformance over the past few years. Among the Magnificent Seven players, Alphabet, parent of Google (GOOG), has ...
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This Technology Continues to Grow at a Steady Pace
Investors sometimes get overly enthusiastic about a new technology. When that happens, rapid growth can occur, and stock valuations related to that technology can soar. But overly fast growth can lead to a quick crash. For long-term adaptations, however, long-term growth can lead to great results, especially for investors who allocate capital to these technologies after they’ve been proven, but while investors have left the trend for dead. For instance, solar technology has been improving at a rapid pace, with panel costs ...
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Earnings Point the Way to Continued Demand in Uncertain Times
While market uncertainty is on the rise, some companies operate in more certain environments than others. A few even manage to thrive when uncertainty rears higher. Today, spending priorities are changing as global trade recedes and nation states work to reassert themselves. Countries are thinking about how they spend their money, including money on defense spending amid rising global tensions and shaken trust in alliances. As a result, military spending is likely to increase, but in a fractured way among nation states ...
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Infrastructure Spending Looks Steady, Even Amid Government Cuts
Market uncertainty has soared in recent weeks. Rising tariff rates have led to a pullback in global trade. Over the long-term, the plan is to restructure the global economy to include more domestic manufacturing. Domestic manufacturing will require significant infrastructure spending. That’s already underway as some chipmakers have moved to produce their chips domestically. But there’s more plans underway, and many companies have already made billions in commitments that will take years to play out. That’s why engineering companies like Jacobs (J) ...
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With Yields Pushing Higher, Bonds Could be the Top Trade of 2025
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 ...
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Consumers Haven’t Given Up on this Momentum Play Yet…
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 ...
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