The Morning Filter 4 Core Stocks to Buy and Hold During Tariff Turbulence
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Apr 14, 2025 Damian Conover, Director of Equity Research at Morningstar, shares insights on stock valuations amid tariff uncertainties. He emphasizes the significance of economic moats and fair value estimates in investment decisions. Recent earnings from major banks like JPMorgan and Wells Fargo are also dissected, with discussions on their performance in the face of potential recession impacts. Conover highlights key stocks for long-term investment, including Microsoft and NextEra Energy, showcasing their resilience and growth potential in challenging markets.
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Market Rally and Uncertainty
- The stock market saw a significant rally after President Trump announced a 90-day tariff pause.
- However, the rally was primarily due to short-covering and removal of worst-case scenarios, with underlying uncertainty remaining.
Managing Investments During Volatility
- Set target prices for both buying and selling stocks to manage risk during market volatility.
- Consider dollar-cost averaging during market downturns and locking in profits during rallies.
Valuing Stocks with Uncertainty
- Morningstar uses discounted cash flow models, incorporating growth projections and economic moat ratings, to determine fair value estimates for stocks.
- Analysts consider long-term impacts and company adaptability when assessing the effects of tariffs.