Category Penny Stocks

Luis Hernandez, here. I’m Editor-in-Chief at InvestorPlace.

It feels like we’ve entered a new age.

We’ve never seen a market quite like this one — where tweets move trillions, tariffs appear overnight, and the rules of global trade are being rewritten in real time.

Investors are worried. What is going to happen next? What should we do with our investments?

In moments like these, it’s more important than ever to have a calm, informed perspective.

That’s exactly what our team of experts — Louis Navellier, Eric Fry, and Luke Lango — is here to provide.

I sat down this morning with InvestorPlace’s three analysts – who all view the markets with a different lens – to get their takes on how markets are responding, what might happen next, and what investors should do and not do right now.

Click here or on the video below to watch.

They’ve navigated volatile markets before. And they’re here to help you cut through the noise, separate emotion from opportunity, and stay focused on what really matters.

I know you’ll find the discussion useful.

Regards,

Luis Hernandez

Editor-in-Chief, InvestorPlace

During these busy times, it pays to stay on top of the latest profit opportunities. And today’s blog post should be a great place to start. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Stock Grader recommendations for 148 big blue chips. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.

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Article printed from InvestorPlace Media, https://investorplace.com/market360/2025/04/20250407-blue-chip-upgrades-downgrades/.

©2025 InvestorPlace Media, LLC

If you thought the Tesla (TSLA) Cybertruck was bold, just wait… Because Elon Musk’s most world-changing product likely isn’t a car, rocket, social media platform, or AI chatbot.

Instead, we believe that his walking, talking humanoid robot Optimus will prove his true magnum opus.

In fact, according to Musk himself, it could become the most valuable product in history, potentially surpassing even the iPhone. 

Tesla’s humanoid robot is powered by the same AI brain and Full Self-Driving (FSD) tech that runs its autonomous vehicles. But unlike a car, Optimus can walk, talk, lift, carry, assemble, cook, clean, and, perhaps most importantly, learn.

Not to mention, it’s already operational, working inside Tesla factories, performing light-duty tasks and learning in the real world. And it won’t remain insular for long. Musk has said Tesla will manufacture thousands of these bots this year, with plans to sell them to external businesses in 2025 and to consumers shortly thereafter.

The Tesla CEO is thinking big. On a Wall Street conference call not long ago, he said:

“Optimus will be the overwhelming majority of Tesla’s value… It has the potential to generate over $10 trillion in revenue.”

This is the same man who created the world’s most valuable car company, most successful private space firm (SpaceX), and one of the most disruptive energy businesses with Tesla Energy. And even considering those prolific triumphs, he believes that Optimus is his crown jewel.

Why is Musk so obsessed with this technology?

Because he sees what’s coming…

Why We Anticipate a Humanoid Future

We feel that the stars are aligning in a way that could catapult humanoid robots into the center of American industry, policy, and everyday life faster than anyone expects.

AI is evolving fast. For example, back in September 2024, most AI models averaged between 80 and 93 IQ, as measured by TrackingAI. Today, most fall between 95 and 130. And that’s just within about six months’ time! 

Pair that level of intelligence with a humanlike machine body, and you have the blueprint for an unlimited, 24/7 labor force. No sleep, wages, lunch breaks, or benefits – just productivity.

That’s a future Musk is actively building. And it’s why we think Optimus could be the most disruptive product ever launched.

This is a machine that could perform warehouse work, manage inventories, assist in factories, restaurants, and homes, patrol and secure properties, perform elder care and domestic duties…

In short, it could easily replace and supplement human labor throughout the entire global economy.

And given Tesla’s scale, vertical integration, and AI expertise, there’s seemingly no company better positioned to manufacture humanoid robots at cost.

But things get even more interesting…

China imposes 34% tariffs on U.S. goods … where Trump’s tariff rates came from … are we on the path to a recession? … Louis Navellier’s insights on what’s happening

As happens in a trade war, the other side has fired back.

This morning, Chinese authorities announced they will impose a 34% tariff on all U.S. goods beginning on April 10.

From China’s Finance Ministry:

China urges the United States to immediately cancel its unilateral tariff measures and resolve trade differences through consultation in an equal, respectful and mutually beneficial manner.

Such a cancellation appears unlikely. Here’s President Trump’s response on Truth Social:

CHINA PLAYED IT WRONG, THEY PANICKED – THE ONE THING THEY CANNOT AFFORD TO DO!

Later in the morning, Trump redirected his attention to Federal Reserve Chairman Jerome Powell, writing:

Energy prices are down, Interest Rates are down, Inflation is down, even Eggs are down 69%, and Jobs are UP, all within two months – A BIG WIN for America. CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!

Powell does not appear likely to immediately comply. Earlier today, speaking in Virginia, he said:

We are well positioned to wait for greater clarity before considering any adjustments to our policy stance. It is too soon to say what will be the appropriate path for monetary policy.

In the meantime, investors are running for cover.

As I write Friday morning, stocks are continuing yesterday’s freefall; all three major indexes are lower by more than 3%.

Yesterday, the small-cap Russell 2000 benchmark entered a bear market (20% down from its most recent high). Today, the Nasdaq is on pace to enter a bear market.

Technology stocks, in particular, are getting nailed as many of them have huge exposure to China.

Stepping back, let’s shine light on two questions that many investors have asked recently…

• Where, exactly, did President Trump’s tariff rates come from?
• Based on the answer, how do our trading partners “right the wrong” so we can get back to normal?

The official explanation is that the new tariffs are based on an aggregate number from the White House representing, “the combined rate of all [foreign countries’] tariffs, non-monetary barriers, and other forms of cheating.”

Let me stop you from trying to make sense of this mathematically.

The new levies have far less to do with actual tariffs and far more to do with something else…

The trade deficit between the U.S. and each respective trading partner.

To make sure we’re all on the same page, a trade deficit is just the difference between imports and exports. For example, if a country imports $100 worth of goods and exports only $80 worth, it has a trade deficit of $20.

It appears the Trump administration began with the trade deficit the U.S. has with each of its trading partners, calculated what percentage of imports those imports represent, then used that as a basis for tariffs (halving the result to arrive at the final “reciprocal” tariff percentage).

This was the administration’s approach to address perceived trade imbalances and unfair practices.

There are some logical problems with this approach

For the first one, let’s begin with Israel.

It places a 0% tariff on U.S. goods. Despite this, the Trump administration just imposed a 17% tariff on Israeli imports.

If the Trump administration’s focus was on addressing nosebleed tariffs and unfair trade practices, why not recognize Israel’s 0% tariff?

Now, a detractor might say, “No, we still must address the unfair trade deficit.”

If that’s the core issue, we should address the apparent inconsistency with what just happened with the U.K.

While there have been fluctuations in the goods trade balance, our overall trade relationship with the U.K. includes significant services trade. This results in a U.S. trade surplus when considering both goods and services.

However, the Trump administration just imposed of a 10% tariff on UK imports. This seems inconsistent with our stated goals.

Again, a detractor might say “But still, we had a goods trade deficit with the U.K., so this is fair.”

Okay, but context is required. The U.S. economy has shifted away from “goods” and more toward “services” over the last many decades.

According to Prosperous America, “U.S. manufacturing has fallen from 21-25% of GDP in 1950s to about 10% today.” Meanwhile, according to StatBox, in 1990, “services” contributed about 60% to the U.S. GDP. This share increased to nearly 80% by 2020. It’s likely continued climbing over the last four years.

Is a focus on our “goods” deficit really the best way to measure trade “fairness”?

Why our trade deficits exist

While there’s no “one size fits all” explanation, we often have trade deficits with many trading partners for a big, common reason…

Foreign citizens are poorer than U.S. citizens. So, they cannot buy everything we export. Especially not in a relative sense to how much U.S. citizens can buy of foreign products.

Plus, their overall economies are much smaller than that of the U.S. It’s not an economic apples-to-apples comparison.

Take Bangladesh, which is now looking at a 37% reciprocal tariff.

According to the Growth Lab at Harvard, in 2023, Bangladesh’s 170 million inhabitants had a GDP per capita of $2,651.

Does it make sense to be indignant that the Bangladeshi people aren’t buying their fair share of the new iPhone 16 Pro, retailing for about $999?

It’s not shocking that we run a trade deficit with them.

Plus, are trade deficits always bad?

I would wager that you have a rather sizeable trade deficit with your grocery store.

Is that a problem for you? Or do you recognize and appreciate the value exchange that takes place?

The biggest problem with all this…

If trade deficits – not tariffs – are at the heart of Trump’s plan, how do smaller countries fix this so that we can return to normal trading?

Trump’s solution appears to be for foreign countries to relocate their manufacturing to the U.S. But this presents a major problem for many of our trading partners.

Consider some Asian and Latin American countries – they’ve built their economies around being manufacturing hubs. If companies relocate to the U.S., these countries could experience deindustrialization, similar to what happened in parts of the U.S. when manufacturing moved offshore in previous decades.

It’s unlikely that the governments of those countries will be thrilled with a mass manufacturing relocation. And so, if they block such a course of action, how does this trade war end?

Plus, it’s not as if plants spring up overnight. We’d need a decade to build up the infrastructure.

Clarifying a big point here, my pushback against tariffs isn’t political. And I’m not anti-Trump.

But I am anti-recession – especially recessions that are unnecessary and self-inflicted.

How serious is the recession risk?

On Monday, both Goldman Sachs and Moody’s Analytics raised their probabilities of a recession.

Goldman upped the odds from 20% to 35%. Moody’s went from 15% at the start of the year to 40%.

Well, in the wake of the tariff news, the betting markets are raising the odds of a recession even higher.

Kalshi is a regulated betting platform that enables wagering on economic outcomes. It’s often accurate as it crowdsources the perspectives/research of thousands of people (or more), not just, say, a small research team at an investment shop.

As you can see below, at the beginning of the year, bettors placed just 17% odds on a recession in 2025. As I write Friday, that number is now 60%.

Now, yesterday, legendary investor Louis Navellier looked squarely at this risk. And while he won’t rule out a recession, he believes that even if one were to occur, enormous growth would be on the other side.

To begin unpacking this, here’s Louis from yesterday’s Accelerated Profits Flash Alert podcast:

Is this going to cause a recession?

I don’t know.

I do know the trade imbalances are going to cause Gross Domestic Product (GDP) to be negative in the first quarter, but we don’t have all the signals of a recession. I don’t think anybody should be surprised.

But as I noted a moment ago, recession or not, Louis believes this will eventually result in economic growth:

Once the dust settles and the market realizes the effects of this mega-wave of onshoring, the U.S. economy could be primed to boom.

What we are witnessing is a profound transformation of the way we do business. The goals of the tariffs have always been the same: level the playing field on trade, increase tax revenue, and ultimately create a massive wave of onshoring to the United States…

The reality is that once everything is in motion, I expect growth to accelerate drastically.

Backing up, Louis’ optimism begins with the Treasurys market

Yesterday, the most important number in the global investment market – the 10-year Treasury yield – dropped as much as 19 basis points as investors fled to safety.

The decline is continuing as I write Friday. The 10-year Treasury yield has fallen below 4.00%, now trading at 3.91%.

Louis sees a brewing tailwind.

Back to his podcast:

If there is a silver lining in what we’re seeing, it’s collapsing Treasury yields. It means the Fed is going to have to cut rates a lot more.

Regular Digest readers know that Louis has been adamant that the Fed will enact four quarter-point interest rate cuts this year. Behind that prediction is a series of falling dominos beginning with foreign economic weakness.

Here’s what Louis wrote back in March:

The reality is several European economies are in dire shape, and the ECB needs to cut rates a few more times this year in order to help shore up these economies.

More rate cuts are good news for the U.S., as it will cause U.S. market rates to decline as foreign capital flows to U.S. Treasuries – and that will pressure the Federal Reserve to cut rates.

To make sure we’re all on the same page, when the ECB cuts interest rates, European bond yields typically fall. European investors see reduced cash flows on those holdings and sell their bonds to buy higher-yielding U.S. Treasuries.

This buying puts upward pressure on U.S. Treasuries prices. And since bond prices and yields are inversely correlated, this means downward pressure on yields.

If you’ve followed Louis for a while, you’ve likely heard him say “The Fed doesn’t like to fight market rates.” So, if these market rates drop, the Fed is likely to feel greater pressure to lower short-term rates.

That would be supportive of our economy and stock market.

The tariff news is likely to accelerate this process

Trump’s new tariffs are awful news for the economies of the Eurozone and our other trading partners.

So, unless tariff deals are made, foreign economies are in for even more pain…which means more resuscitative rate cuts from foreign central banks…which means lower treasury yields…which means lower rates from the Federal Reserve.

Back to Louis:

The euro and the British…economies are in recessions…

Interest rates are collapsing everywhere, including America, but they’re collapsing in Europe and Asia faster than they are here.

When all the dust settles, everybody goes back to the dollar because we have the highest rates, and we are cutting the slowest of all central banks.

What about the risk that Trump’s new tariffs will be inflationary?

Louis believes higher prices from tariffs are likely to be offset by a stronger dollar.

Here’s his illustration:

There’s a 10% minimum tariff on everything. Two-thirds of U.S. goods come in duty-free – I guess that’s over – so your bananas now have a 10% tariff, for example.

Okay, well, if the dollar strengthens as I anticipate and remains strong, you won’t see that 10%.

That’s what happened with the previous tariffs that they passed.

Let’s flesh this out to make sure we’re all on the same page.

That 10% tariff on imported bananas ordinarily would mean that they now cost 10% more before other factors are considered.

So, let’s say a banana from Mexico costs 100 pesos, and the exchange rate is 1 USD = 10 pesos. So, the banana costs $10.

Louis is arguing that if the dollar increases in value, then the USD/peso exchange rate could go to, say, 1 USD = 12 pesos. So, that same banana now costs about $8.33 before the tariff is applied. But after the tariff, it climbs back to about $10.

So, Louis believes that the stronger dollar and new tariffs will net out, resulting in a relatively stable banana price.

While we hope Louis is right, some of Trump’s new tariffs are multiples greater than 10%, so it’ll be challenging for dollar appreciation alone to offset the full price impact. It’ll be fascinating to watch how that plays out.

What about Trump’s ultimate goal: U.S. onshoring and the rebirth of domestic manufacturing?

Here’s Louis’ prediction:

Everything’s going to be “Let’s make a deal here” soon. And obviously, President Trump’s going to say, “Just onshore and you’ll have zero tariffs.”

And that’s happening.

There’s already $6 trillion in onshoring announced, and that’s without the German auto manufacturers boosting up their U.S. manufacturing.

Louis zeroes in on German auto manufacturers, making the case for why we could see their widespread relocation to America:

[German automakers are] going to be forced by the EU to make all-electric by 2035, and they really don’t make money on electric vehicles significantly.

So, if they want to make money and survive, they might just want to come to America and make vehicles with engines. They can make hybrids and EVs as well.

But the bottom line is they’ll find a welcome mat in America – states will throw incentives at them to expand their plants.

They’ll find cheaper labor. They’ll find much cheaper electricity which you need for manufacturing, and they’ll find a huge market they could sell into.

Basically, your alternative is to onshore big time. So that is what is going to be happening.

Put it altogether and you can see why Louis is optimistic – even if there’s volatility and additional stock market weakness in our immediate future

Turning to your portfolio, how might you respond to the potential for upcoming volatility?

In yesterday’s Digest, we highlighted how adopting a “trading” mindset can help during turbulent markets such as today’s.

We profiled Andy and Landon Swan, the analysts behind our corporate partner, LikeFolio. They use consumer data to spot shifts and trends in spending behavior on Main Street before it become news on Wall Street.

Based on their insights, they place targeted bets during earnings season (which we’re about to start). Here’s Landon with the goal:

Get in on Monday, get out by Friday, collect your cash, and enjoy that weekend.

You can learn more about their approach here.

Let’s highlight another approach today – this time, from Louis. It centers on his market approach in Accelerated Profits.

In this trading service, Louis zeroes in on high-growth stocks poised for rapid price appreciation. He uses his proprietary stock-rating system to focus on top-tier stocks exhibiting exceptional fundamentals and strong momentum.

The goal is to ride their bursts of bullish momentum, then get out of the market with profits, reducing exposure to downward volatility.

And despite how it might feel right now, Louis believes we’re in for plenty of bullish momentum in the coming weeks – especially for his favorite AI stocks:

I expect Trump 2.0 to clear away more red tape and unleash the next wave of innovation in the AI Revolution.

You see, these tariff changes are just one part of a massive convergence that’s taking place between Trump’s policies and the AI Revolution.

As this Trump/AI Convergence happens, I expect it to unlock powerful gains for investors.

Louis believes so strongly in this new market set up that he’s promising his system can help you see at least $100,000 in payout opportunities over the next 12 months, without needing a huge chunk of money to get started.

We’re running long today, but you can learn more about it right here.

Circling back to tariff drama…

Let’s end today with more big-picture optimism from Louis.

I’ll let him take us out:

In the end, the U.S. is going to win because we have the leverage, and that’s that.

Soon, you’re going to see a massive game of “let’s make a deal,” and companies should begin onshoring their production to the U.S.

I encourage you to hang on through this uptick in volatility. Because once the dust settles, it will be time to grow and prosper. 

In the end, the strong dollar will reduce the costs of the imports. It will help keep inflation in check. Our Fed will be forced to catch up with market rates…

So, there’s a lot of fascinating things underway, but I’m expecting a nice reversal in the market sooner than later.

Have a good evening,

Jeff Remsburg

Editor’s Note: Yesterday, InvestorPlace CEO Brian Hunt reminded us that free markets, innovation, and productive enterprise have allowed mankind to achieve incredible progress despite wars, recessions, and bear markets.

Today, Brian picks up where he left off, sharing charts that show how – even during even the most severe stock market declines – American prosperity rises over time and markets eventually bounce back. Rather than letting our emotions take the wheel, we’re better off focusing on what really matters: progress.

Hello, Reader.

You know that for every one problem in America, there are thousands of brilliant people working on innovative solutions.

These are the types of people who invented the lightbulb… the television… the pacemaker… the airplane… and the iPhone.

They are people who have the brains and worth ethic to create incredible businesses like Starbucks, Facebook, Amazon, Whole Foods, Apple, Nike, and Google.

These companies have provided good jobs to millions of people… they provided goods and services to thankful customers… and they produced hundreds of billions of dollars in wealth for their shareholders. All by creating and innovating.

It’s been that way for centuries… and it will continue to be that way in the future.

Below is a chart of the Dow Jones Industrial Index from post-World War II through 2021.

Incredible, right?

The stock market declines of 1987, 2000, and 2008 – while painful at the time – are just speed bumps on the long-term chart. And the takeaway is clear: Over time, American prosperity rises and the stock market goes up.

With this picture in mind, my advice is to “make the trend your friend” and ignore the naysayers. Don’t panic over a market correction and don’t let the fear-stoking headline of the hour scare you out of your holdings of high-quality innovative companies that are poised to change the world.

During stock market corrections, I ask you to focus on what really matters: progress, transformational industry trends, creating value for others, and innovation.

Remember that despite all the negative occurrences of the past 100 years, shareholders of innovative companies that serve their customers have made fortunes.

It’s been the surest way to get rich in America for more than 100 years. It will be that way for at least 100 more. That’s why staying bullish on human progress and innovation is at the foundation of what we do at InvestorPlace.

It’s also why, when our subscribers write in to ask if we have “bear market survival” plans, we send them this essay.

Our “bear market survival” plan consists of reviewing the facts above, thinking long-term, and looking to buy high-quality stocks at discount prices.

Our “bear market survival” plan does not consist of selling stocks in a panic.

I believe that when an investor can “deprogram” themselves from obsessing over “the market” and interest rates – and instead focus on the things above… the things that history has shown really matter – that investor ascends to a higher level of understanding when it comes to money and investing.

It’s one of the most important milestones on the journey to mastering money.

The Next Time You’re Tempted to Panic, Look at These Eight Charts

Since 1928, there have been 27 bear markets in the benchmark S&P 500 stock index. After each and every one of them, stocks went on to reach all-time highs. The track record here is perfect.

Recent history has eight outstanding examples of why a smart “bear market strategy” consists of keeping the facts in mind, thinking long term, and not getting scared out of stocks.

We like to think these eight charts are an antidote to a harmful financial disease we call “Short-Term-itis.”

For example, during the famed 1987 “Black Monday” crash, the stock market dropped 33.5% in a single day. It caused a short-term global financial panic.

However, less than two years later, the stock market reached an all-time high.

Then you have the big stock market decline of 1990, which was created by worries over a U.S. recession and the Gulf War. Stocks fell 19.9% during this decline. However, stocks recovered and hit a new all-time high less than a year later.

Then you have the big 1998 market decline. Stocks fell 19.3% over the span of a few months. Stocks quickly recovered and reached a new all-time high by early 1999.

Then you have the 2000-2002 bear market. This crash came after the dot-com boom reached its frenzied peak in March 2000. Although this was one of the worst market downturns in U.S. history, stocks went on to recover and reach new all-time highs in 2007.

Next, you have the stock bear market that accompanied the Great Financial Crisis of 2008. Stocks fell an incredible 56% during the decline. However, stocks went on to recover and entered a historic bull market that lasted a decade. Fortunes were made during the recovery, and the market reached a new all-time high in 2013.

In the midst of the decade-long recovery that followed the 2008 crash, the market saw a decline of about 19% in late 2011. Stocks recovered and reached a new all-time high by early 2012.

In 2018, the market suffered a gut-wrenching decline of 19%. But by the summer of the following year, stocks had recovered and reached another new all-time high.

Then there is the pandemic stock market drop and recovery of 2020. When the world realized Covid-19 was a serious worldwide problem, the market fell 53% in less than two months. However, government stimulus helped the market recover, and stocks reached a new all-time high by the end of the year.

Summing Up

You’ve just gone on a tour of the biggest financial disasters of the past 60 years.

You’ve reviewed the most famous, most horrible bear markets and stock crashes in history… like the Black Monday crash of 1987… the dot-com crash of 2000… and the Great Financial Crisis of 2008.

You’ve also seen the track record here is perfect. Each period of rough times was followed by all-time highs.

These recent recoveries highlight a very long trend…

Every major stock market correction, every crash, every bear market in American history has been followed by new all-time highs.

That’s why we state once again… for emphasis…

During stock market corrections, focus on what really matters: progress, transformational industry trends, creating value for others, and innovation.

Remember that despite all the negative developments of the past 100 years, shareholders of innovative companies that serve their customers have made fortunes.

Remember that it pays to bet on America.

Remember that a wise “bear market survival” plan consists of reviewing the facts above, thinking long-term, and staying long stocks.

Regards,

Brian Hunt

CEO, InvestorPlace

In mid-March here, I (Tom Yeung) wrote about three stocks to sell on an escalating trade war. President Donald Trump was ratcheting his tariff rhetoric, so we highlighted three import-reliant firms to sell: 

• Deckers Outdoor Corp. (DECK) 

• Abercrombie & Fitch Co. (ANF) 

• Toll Brothers Inc. (TOL) 

That’s because “eggs in the same basket” strategies cut both ways. During normal times, a firm like UGG boots maker Deckers saves millions by sourcing its sheepskin through just two Chinese tanneries. 

But much like a gambler betting it all on “black,” this high-risk, high-reward strategy also exposes importers to tariffs. Shares of Deckers have slumped 17% since our “sell” report, and the trio have fallen 12% as a group. More pain will come as tariffs materialize. 

However, InvestorPlace Senior Analyst Louis Navellier now sees the “Liberation Day” selloff as an opportunity to pivot into income stocks. These dividend-producing firms are typically excellent safe-haven investments, because they both generate income during tough times and still have upside potential for market recoveries.  

In 2008, for instance, two of these income-producing firms saw their stocks go up in the middle of the global financial crisis: 

• McDonald’s Corp. (MCD) 

Of course, dividend stocks aren’t the only way for investors to produce income. In a new presentation, Louis talks about his income-producing strategy at length.  

He recently revealed a revolutionary income strategy he’s been using that has paid out an average of roughly $9,000 per month for winning trades… in both bull and bear markets. And he’s inviting you to try it for yourself today. Think it’s impossible for you to collect more than $100,000 in extra income this year in this challenging market? In his new free presentation, Louis shows you how to do just that.  

In the meantime, I’d like to use this opportunity to revisit three “Dividend Kings” I introduced last December.  

Shares of two of these three firms have risen since then (the third is down just 3%), and they continue to illustrate why top income stocks remain the best defense in times like these… 

Dividend King No. 1: The Rural Retailer  

Dollar General Corp. (DG) is the largest of the three major American dollar stores. The company operates 20,000 locations spread across the country and targets rural communities too small to be served by big-box retailers. In short, DG is a relatively bare-bones convenience store that serves customers between their weekly shopping trips to larger towns.  

The strategy has worked. Over the past 25 years, Dollar General has built a reputation for low prices and used its immense cash flows to expand its footprint fivefold. The firm comfortably beat earnings estimates when it reported fourth-quarter results on March 13. 

The firm is also a cash cow thanks to the quick payback periods of stores. The company provides an ample quarterly dividend of $0.59 per share and has a healthy dividend coverage ratio of 2.4X. Even if net income sank 60%, the firm would still generate enough profits to cover its dividend. 

These facts help DG stand far apart from its closest rivals, Dollar Tree Inc. (DLTR) and its subsidiary, Family Dollar. The two smaller chains have struggled to match the enormous scale of Dollar General’s logistics network, and therefore pay no dividend. It’s not surprising that DLTR sank 13% the day after the “Liberation Day” announcement, while DG rose 4.7%. 

Going forward, fears of a potential 2025 recession should keep shares of Dollar General elevated. Betting markets now give a 50% chance of a recession this year, and Dollar General is better placed than its peers to be the “Walmart of 2008” that helps consumers – and investors – make it through. 

Dividend King No. 2: The Deep Value Drugmaker  

My No. 2 pick is a little trickier, given the complicated relationship with Robert F. Kennedy Jr. and the Department of Health and Human Services he leads. Last week, his department said it would lay off 10,000 workers, with sharp cuts at the Food and Drug Administration – the entity involved with green-lighting new drugs. HHS also announced the departure of the FDA’s top vaccine regulator, who had overseen Operation Warp Speed during Trump’s first term. 

This is obviously counterproductive to RFK Jr.’s goal to “Make America Healthy Again.” Cuts at the FDA will slow the drug approval process, making it even more difficult to get new therapies on the market. 

Still, Pfizer Inc. (PFE) has done remarkably well in the face of these headwinds. Shares have slipped just 3% since I wrote about the stock in December. Analysts have also maintained their 2025 and 2026 earnings estimates for Pfizer, indicating they don’t believe much has changed. 

Three key facts have kept Pfizer’s shares elevated. 

The first is Pfizer’s diversified revenue base. As I noted in December: 

Even without Covid-19 sales, Pfizer remains a diversified, well-run pharma company with multiple blockbusters spanning oncology, immunology, and more. The company also has one of the best pipelines of drugs in the approval stage in the industry, and a sales team that can turn promising drugs into blockbusters.   

This has helped Pfizer outperform single-therapy companies like DexCom Inc. (DXCM) and Novavax Inc. (NVAX). Even if one class of drugs (like vaccines) falls out of favor, PFE can rely on other areas to make up the difference. 

Second, Pfizer’s generous dividend has become a source of stability. Here’s more from December: 

The company’s dividend, which currently represents a 6.6% yield (160% higher than the average Dividend Aristocrat!), also remains safe thanks to a reasonable 1.7X coverage ratio – the ratio of dividends to net income. In other words, Pfizer’s profits are high enough that its earnings per share exceed its dividends per share by 70%.  

Finally, there’s Pfizer’s earnings.  

On February 4, management announced Q4 results that knocked expectations out of the park. Revenues surged 25% to $17.8 billion, beating estimates by 2%. Earnings per share quintupled to $0.63, a 34% beat.  

These results were driven by multiple drugs, including blood thinner Eliquis, migraine drug Nurtec, and oncology therapy Ibrance. In an interview with Barron’s, CEO Albert Bourla said he had met with RFK Jr. and remained “unbothered” by the current administration’s view on vaccines because of this wide base. 

It’s also notable that pharmaceuticals are exempted from the global 10% tariff rates, according to Annex II of the Reciprocal Tariff executive order. 

Together, that suggests Pfizer’s shares offer significant downside protection while leaving the door open to future gains. Its forward price-to-earnings multiples sits at just 8.3X, and a return to more “normal” multiples gives shares 30% upside. 

Dividend King 3: The Monthly Dividend Company  

Finally, there is Realty Income Corp. (O), widely regarded as one of the best-run real estate investment trusts (REITs) in America 

The San Diego-based firm takes a stunningly conservative approach to real estate investing by using only “triple net” leases with high-quality tenants. Under these terms, tenants are responsible for property taxes, insurance, maintenance, and utilities, on top of rent. 

This disciplined strategy has paid off. Realty Income has grown its revenue every year since 2009, and raised its dividend annually since 1995. It also pays its dividend monthly, making it attractive for those relying on investment income. 

Q4 earnings announced on February 24 were excellent. Earnings before interest, taxes, depreciation, and amortization (EBITDA) surged 26% to $1.2 billion, while adjusted funds from operations per share (a standard REIT metric that removes reinvestment dollars) rose 4% to $1.05 million. The latter figure is expected to grind 2% higher this year. 

Recent concerns over a recession should now make Realty Income’s shares appealing to regular investors too.  

The company continues to pump out a 5.7% dividend yield, and the potential of falling interest rates will make this figure seem even better relative to fixed-income instruments. Bond traders now expect four rate cuts by the end of 2025 (up from previous estimates of two to three cuts).  

The Downsides of Tariffs 

That said, we get that you’re worried about what happens next. 

We’re concerned too. 

After all, tariffs on physical goods are a blunt 19th-century tool for a 21st-century economy. You don’t flick a light switch and suddenly have a 50,000-person shoe factory running in rural Ohio. Nor do tariffs target outsourced services… software… or patents on foreign-developed drugs. 

The calculations of these rates have also been chaotic; the formula for “Liberation Day” tariff rates was simply to take America’s trade deficit with a certain country, divide it by imports, and halve that figure. Any country running a trade surplus with the U.S. would face a 10% tariff.  

As the Economist puts it, that’s “almost as random as taxing you on the number of vowels in your name.” Two of my other Dividend King picks this year have fallen double-digits on unexpectedly high auto tariffs. 

However, the disorganized rollout of these levies has created a moment for income-generating companies. The S&P High Yield Dividend Aristocrats Index has risen 2% this year, outperforming the 7% drop in the S&P 500 by a wide margin. 

And in a new presentation, Louis explains why now is the totally wrong time to sell everything and move to cash. That’s because he expects the current turbulence to cause heartburn and unlock powerful gains for investors. 

That’s where his Accelerated Profits service comes in. His Buy List is full of stocks that hold up when the market gets choppy – and sprint ahead when things turn around. 

That’s why his Accelerated Profits subscribers had the chance, over the past year or so, for gains such as… 

• 90.25% from Celestica Inc. (CLS) 

• 95.13% from Builders FirstSource Inc. (BLDR) 

• 114.49% from Targa Resources Corp. (TRGP) 

• 187.28% from YPF Sociedad Anonomia (YPF) 

• 604% from Vista Energy (VIST) 

In fact, Louis’s system has identified the companies best positioned to thrive in this new era – stocks with superior fundamentals and persistent institutional buying pressure. 

In fact, Louis promises that he can show you how to make at least $100,000 cash with this strategy in the next 12 months… starting with a modest $7,500 investment in each opportunity… no matter what happens in the market.  

Go here to see for yourself. 

Until next week, 

Tom Yeung 

Markets Analyst, InvestorPlace 

Editor’s Note: President Donald Trump’s tariffs are causing a continuous selloff in the stock market. Understandably, that’s causing many to panic.

So, this weekend, I’m sharing InvestorPlace CEO Brian Hunt’s comprehensive bear market survival guide. Today, Brian highlights one of America’s greatest success stories – a real reminder of why we should continue to believe in American innovation and prosperity even during challenging times.

Be sure to check tomorrow’s Smart Money, where Brian will walk us through the stock market’s historic resilience – exactly what we need to be reminded of to survive a bear market.

Hello, Reader.

When the stock market goes through a big drop and your portfolio’s value is going lower and lower, it can be difficult to know what to do.

It’s an emotional time, and mistakes are common when we are feeling pressure.

• What about my retirement…?
• My kid’s college education…?
• My dreams of financial independence…?

Well, when the market takes a nosedive there are some things you should do, and also some things you absolutely, positively should not do.

And we can learn a lot by looking at one of the biggest business stories of the past 100 years: Amazon.com Inc. (AMZN).

If you were asked to name some of the biggest stock market winners of the past century, there’s a good chance Amazon would come to mind.

After all, Amazon has gone from a small online bookseller to one of the world’s largest, most powerful companies. In 2020, the company’s market value reached a massive $1 trillion. As of now, it’s $1.8 trillion.

Amazon now sells virtually everything… and its founder, Jeff Bezos, is one of the world’s richest men.

Amazon’s market value has increased more than 120,000% since its IPO in 1997. That kind of gain turns every $10,000 invested into a stunning $12 million.

You probably also know why Amazon achieved such huge success. Its Prime membership program was a big hit. Its mastery of logistics lowered the price of almost everything. Its cloud computing business generated billions of dollars in annual revenue.

What you probably don’t know is what the Dow Jones Industrial Average did on March 4, 2015… or what the Dow did on October 18, 2013… or what the Dow did on any specific day of Amazon’s incredible rise. You also probably don’t know what mortgage rates were on December 12, 2003… or where the Federal Reserve had short-term interest rates set at on July 27, 2011.

That’s because what the stock market and interest rates were doing on those days didn’t amount to a hill of beans compared to what Amazon’s business was doing.

Recessions, bear markets, and stock market corrections made a lot of headlines but proved to be tiny speedbumps on Amazon’s path to success.

What the market did or what made headline news on any specific day is meaningless compared to the power of Amazon’s business model, the massive online shopping trend it rode to success, and the moves its management made.

What really mattered to Amazon shareholders wasn’t the broad market, interest rates, or presidential elections. What really mattered was that Amazon constantly innovated, delivered value to its customers, and outperformed its competition.

The same goes for every innovative, successful company you can think of: Apple Inc. (AAPL). The Walt Disney Co. (DIS). Starbucks Corp. (SBUX). Google’s parent company, Alphabet Inc. (GOOGL).

What interest rates or the stock market did during the ascent of these companies didn’t matter at all. Even recessions, bear markets, and stock crashes didn’t matter. Who was president didn’t matter.

What mattered was innovation, massive industry trends, delivering value to customers, and smart business models.

Here’s why this is so important to you as an investor…

If you invest in stocks for the long-term, you are guaranteed to live through bear markets, recessions, and corrections.

These declines – even if they are in the modest 15% range – will scare you.

They will make you question the idea of owning stocks.

If you invest in stocks for the long-term, you’re sure to come across tons of “bearish” news and predictions.

There’s a whole industry of journalists and financial analysts who constantly predict the fall of America, runaway inflation, the next Great Depression, and a host of other calamities.

These folks are born pessimists. No amount of positive things can shake them from thinking things are about to go to hell in a handbasket soon.

And you know what?

We listen to them!

Humans are hardwired to pay close attention to potential dangers.

A hundred thousand years ago, it’s how we survived. Constantly worrying that a tiger or bear could be around the corner was a valuable instinct.

These days, we don’t have much to fear from bears or tigers.

However, our instincts make us pay close attention to potential dangers… both real and imagined. So, our subconscious minds compel us to click on bearish headlines, fixate on disasters, worry about elections, buy magazines with gloomy forecasts on their covers, and fret over 15% stock market corrections.

Or as media insiders like to say, “Fear sells” and “If it bleeds, it leads.”

I encourage you to let common sense and the facts shape your actions instead of leaving it up to caveman thinking.

You’ll be far more successful investor if you do.

Why do I say that? And what are the facts?

Well, just consider that the stock market has averaged a positive annual return of 10% for the past 100 years. This is because the trend of increasing prosperity that is powered by free markets and free enterprise is one of the strongest trends in human history.

And here’s another important fact…

During the 20th century, stocks appreciated in value by 1,500,000%.

A 1,500,000% return turns every $100 invested into $1.5 million.

But wait…

Wasn’t the 20th century filled with wars and recessions and other awful things?

Yes.

There were two huge world wars, which killed tens of millions of people and devastated large portions of the world.

You also had the Great Depression… the Korean War… the Cuban Missile Crisis… the Watergate scandal … the inflation of the 1970s… the Arab oil embargo… the Vietnam War… and the savings and loan crisis of the 1990s.

You also had more than a dozen recessions and five horrible bear markets.

Despite all these horrible things, U.S. stocks appreciated in value by 1,500,000% during the 20th century.

Despite something bad happening every decade, incredible wealth was created by innovative businesses like The Coca-Cola Co. (KO), Ford Motor Co. (F), Hershey Co. (HSY), Intel Corp. (INTC), General Electric Co. (GE), McDonald’s Corp. (MCD), The Procter & Gamble Co. (PG), Tootsie Roll Industries Inc. (TR), Pfizer Inc. (PFE), Microsoft Corp. (MSFT), Walmart Inc. (WMT), and thousands of others.

We all know there are problems in America…

These topics are covered daily in the news. They are the subjects of best-selling books. They have many people paralyzed by fear.

But if you know your history and know how powerful American innovation is, you know this is no cause to sell your stocks and crawl into a hole.

Sincerely,

Brian Hunt

CEO, InvestorPlace

P.S. Tomorrow Brian will be back with the second half of his essay.

Remember to take the long view of your portfolio … how legendary investor Louis Navellier uses short-term moves to profit

I don’t claim to have any psychic powers, but I’m pretty sure I know what some of you are thinking.

What does this mean for my retirement?
Can I still afford to send the kids to college?
Wasn’t I just getting ahead for once?
Can I still afford that great vacation this summer?

I’m glad this week is over because watching the market was brutal.

The market got crushed. Portfolios took a beating. If you dared to log in to your account, you probably closed your eyes fast and wished you hadn’t.

Maybe you cursed, like the CEO of RH did during his earnings call.

And you may have wondered if it’s time to bail.

When everything’s tanking, it’s hard not to panic.

Look, you’re not alone. Everyone is going to think that way after a week like the one we just had.

But here’s the thing—if you haven’t acted already, what you do tomorrow matters more than what the market did yesterday.

There are a few smart moves that can keep you on track… and a couple big mistakes that could make a bad situation way worse.

Let’s talk about both.

And I’ll give you a couple of stock picks that are starting to look like bargains today.

A Lesson From History

I’m going to steal a bit from a report by our CEO Brian Hunt, called “What to Do When the Stock Market Drops.”

It’s a great essay about how to view the market during tough times like we’re seeing now.

And the story starts with a name familiar to all of you.

Amazon.

From Brian:

If you were asked to name some of the biggest stock market winners of the past century, there’s a good chance Amazon would come to mind.

After all, Amazon has gone from a small online bookseller to one of the world’s largest, most powerful companies. In 2020, the company’s market value reached a massive $1 trillion.

Amazon now sells virtually everything… and its founder, Jeff Bezos, is one of the world’s richest men.

As result, Amazon’s shareholders have enjoyed one heck of a ride…

Amazon’s market value has increased more than 120,000% since its IPO in 1997. That kind of gain turns every $10,000 invested into a stunning $12 million.

You probably also know why Amazon achieved such huge success. Its Prime membership program was a big hit. Its mastery of logistics lowered the price of almost everything. Its cloud computing business generated billions of dollars in annual revenue.

What you probably don’t know is what the Dow Jones Industrial Average did on March 4, 2015… or what the Dow did on October 18, 2013… or what the Dow did on ANY specific day of Amazon’s incredible rise.

You also probably don’t know what mortgage rates were on December 12, 2003… or where the Federal Reserve had short-term interest rates set at on July 27, 2011.

That’s because what the stock market and interest rates were doing on those days didn’t amount to a hill of beans compared to what Amazon’s business was doing.

Recessions, bear markets, and stock market corrections made a lot of headlines but proved to be tiny speedbumps on Amazon’s path to success.

What the market did or what made headline news on any specific day is meaningless compared to the power of Amazon’s business model, the massive online shopping trend it rode to success, and the moves its management made.

What really mattered to Amazon shareholders wasn’t the broad market, interest rates, or presidential elections. What really mattered was that Amazon constantly innovated, delivered value to its customers, and outperformed its competition.

It’s easy to get caught up in big market downturns and lose sight of the big picture.

But when you look at your portfolio, it’s critical to think long term with a focus on progress, transformational industry trends, value creation, and innovation.

That is what has won in the market again and again.

What Louis Navellier Expects Next

No one wants to deny the market conditions.

Everyone has their own financial situation, and their own risk tolerance.

But one of our running themes in the Digest is to not act emotionally.

And that is a running theme in Louis Navellier’s services. Louis is an investing legend with 40 years of experience in the market.

He developed his quantitative stock picking system so that he’d always be investing with the numbers and not based on any “gut feeling” or other emotional responses.

Here is part of what he is sharing with his subscribers.

The stock market is a manic crowd that likes to react rather than think. 

As the recent earnings announcement season wound down, tariff mania took hold and the Atlanta Fed’s GDP Now forecast for negative GDP growth rattled investors. 

However, none of the economic tea leaves that signal a recession, such as PMIs, retail sales, factory output, existing home sales and unemployment are signaling an economic contraction.  Instead, a soaring trade deficit caused by the dumping of goods to beat impending tariffs, merely triggered the Atlanta Fed’s GDP Now model to forecast negative GDP growth.

I was lucky enough to sit down with Louis this week and record a video right after Trump’s tariff announcement.

Hit “play” below to watch now.

A lot of people think of Louis as a long-term growth investor who focuses on a “buy and hold” approach. The New York Times called him “an icon among growth investors.”

But that’s not the entirety of Louis’ market approach…

When Donald Trump returned to office, Louis used his software for something different in his Accelerated Profits service.

He designed a portion of his system specifically for short-term stock trading, targeting fast-moving stocks with strong upward momentum. His intended hold periods are one month, three months or six months, and then he takes profits.

He explains how the system is going to focus on the Trump agenda in a free video.

Enjoy your weekend,

Luis Hernandez

Editor in Chief, InvestorPlace

Editor’s Note: The markets are in a tailspin due to the ongoing tariff chaos. That’s why, yesterday, I shared the first part of InvestorPlace CEO Brian Hunt’s essay about what you should do whenever the market goes down.

I consider this essay essential reading, folks. So, if you missed it, you can check out the first part here.

Now, in part two, Brian details how there have been 26 bear markets in the S&P 500 since 1928. During this period, there were wars, a Great Depression, a global pandemic… you name it. And yet, every single time, stocks went on to reach all-time highs.

I hope you’ve enjoyed hearing from our company’s leadership during this chaotic period. We remain steadfast in our belief in the U.S. and its markets to create incredible long-term wealth for those who remain both patient and opportunistic.

I’ll turn it over to Brian for more.