The Morning Filter 5 Stocks to Buy in May and Hold for the Long Term
18 snips
May 5, 2025 Gregg Warren, a Morningstar strategist and Berkshire analyst, shares insights from Berkshire Hathaway’s 2025 annual meeting. He discusses Warren Buffett’s retirement and the leadership transition to Greg Abel, highlighting potential strategies and challenges. The conversation shifts to five recommended stocks for May, focusing on stability and long-term value in defensive sectors. Additionally, they explore the earnings of major companies like Apple and Microsoft, underscoring investment opportunities amidst market fluctuations.
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GDP Distorted by Tariffs
- First quarter GDP was distorted by pre-tariff import activity, lowering reported growth.
- Positive growth is expected sequentially despite the distortion, with no recession as base case.
Fed Rate Cut Unlikely Soon
- Fed unlikely to cut rates soon unless economic indicators sharply worsen.
- Rate cut in June would require negative signs, likely hurting stocks short term.
Key Earnings to Watch
- Earnings to watch include ARM (overvalued) and AMD (undervalued).
- Cybersecurity stocks are fully valued; Palo Alto is a potential buy-on-dips candidate.