US Edition3 principles to invest by, whatever comes next
Morningstar advises US investors to prioritize buy-and-hold strategies, diversification, and bond investments amid 8% market gains and rising bond yields in 2025, analysts say.
- This year, Morningstar advised investors to accept market unpredictability, emphasizing Principle 1: 'Where the market goes, nobody knows' and endorsing Principle 2: global investing as non-US markets rally.
- Thanks to rate hikes from 2022–23, fixed‑income yields rose to mid‑2000s levels, while tariffs and 2025 'plot twists' have redirected markets sharply, prompting ongoing uncertainty.
- While stocks fell late February to early April, the Morningstar US Core Bond Index gained 1.30%, showing bonds' role in diversifying equities and providing income, Morningstar Investment Management said.
- Investors should stick to buy‑and‑hold and diversification, as bargains cluster in value and small‑cap stocks, while Morningstar colleagues see upside in bonds and international equities this year.
- With 'unknown unknowns' in play, short-term asset-price moves reflect complex macro and micro factors, while the dollar weakening and debt and deficit concerns heighten cross-border risks amid 2022's worst bond market effects.
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Total News Sources17
Leaning Left7Leaning Right0Center7Last UpdatedBias Distribution50% Left, 50% Center
Bias Distribution
- 50% of the sources lean Left, 50% of the sources are Center
50% Center
L 50%
C 50%
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