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This week’s highlights:
Weekly Market Update: Stocks Down 0.3%, As Consumer Cyclicals Turn Lower
6 Undervalued Stocks That Just Raised Dividends
Can Growth Stocks Keep Powering the Market Higher?
Value Stocks Lead to Start 2025, but Growth Retains Its Long-Term Advantage
Do Market Forecasts Really Matter?
Are Stock Investors in for Another Tech Wreck?
We’re still several weeks away from March, but this past week definitely came in like a lion and went out like a lamb. On Monday, investors were confronting the possibility of a trade war between the United States and our two biggest training partners, and the stock market looked like it was going to take it on the nose. But disaster was averted and markets stabilized.
From there, aside from a barrage of earnings releases, there was little to move the market through the rest of the week. Friday’s jobs report showed a continued robust labor market, but not enough to move the needle in terms of interest rate expectations. The Morningstar US Market Index closed the week down 0.3%, with real estate and technology sectors posting gains, but consumer cyclicals and industrials declining.
In the background, one trend we’ve seen so far in 2025 is that growth stocks have struggled. As Bella Albrecht reports, value stocks are solidly ahead of growth to start the year. However, as she digs into the numbers, an interesting trend emerges: Months when value outperforms are actually very common. So why has growth left value in the dust over the long term?
Continuing in this vein, Sarah Hansen spoke with top stock strategists about what might be ahead for growth stocks. Some analysts say the tailwinds for growth won’t be as strong in the months and quarters ahead.
Meanwhile, Morningstar’s Dan Lefkovitz takes a trip down memory lane to look at a growth stock bubble of yesteryear and considers whether another “tech wreck” might be in the offing.
Outside the stock market, worries about inflation, trade wars, and geopolitical uncertainty have sparked a big rally in gold. We check in with some precious metals analysts about whether the big rally in gold can continue.
Morningstar loves contrarian thinking, and after all this prognosticating, we can’t help but question how much faith investors should put in it. Check out this terrific video interview with Christine Benz about whether market forecasts really matter.
Lastly, we’ve got a pair of screens for you. First we looked for the core bond funds that have performed best so far this year. Then, we’ve got our monthly look at undervalued stocks that just raised dividends, which include a casino company and a supermarket chain.
Be sure to visit our Markets page for our latest coverage and live stock market updates, along with our weekly calendar of key upcoming data and events.
