The CPI Report Looks Bad, but Don't Panic
Even as inflation gradually turns lower, wide swings in the markets are likely when the news disappoints.
David Sekera
Dave Sekera, CFA, is chief U.S. market strategist for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. Before assuming his current role in August 2020, he was a managing director for DBRS Morningstar. Additionally, he regularly published commentary to provide investors with relevant insights into the corporate-bond markets.
Prior to joining Morningstar in 2010, Sekera worked in the alternative asset-management field and has held positions as both a buy-side and sell-side analyst. He has over 25 years of analytical experience covering the securities markets.
Sekera holds a bachelor's degree in finance and decision sciences from Miami University. He also holds the Chartered Financial Analyst® designation. Follow David on Twitter: @MstarMarkets. Please note, Dave does not use either WhatsApp or Telegram. Anyone claiming to be Dave on these apps is an impersonator. He will not contact anyone on these apps and will not provide any content or advice on either app.
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Equities Start Month in Deeply Undervalued Territory After Latest Pullback
We expect sluggish economic growth and low inflation to provide the Fed with enough room to begin loosening monetary policy.
Strong U.S. Dollar a Headwind to Earnings Growth
Dollar appreciation will result in lower short-term earnings growth but typically won’t have a meaningful effect on long-term intrinsic valuation.
6 More Stocks to Play the Shift in Consumer Spending
These stocks should benefit from a return to our offices and public events.
4 Stocks to Play the Shift in Consumer Spending
These stocks should benefit from a return to prepandemic spending patterns.
3 Stocks That Will Benefit From the Inflation Reduction Act
These climate-related companies are well positioned to profit.
The Companies That Stand to Win and Lose From the Inflation Reduction Act
First Solar, SunPower poised to benefit. Pharmaceutical companies not expected to see major changes to fair value estimates.
3 Top Stocks to Buy in Q3 2022
These wide-moat stocks are a bargain.
AT&T Shares Deserve a Return Call
AT&T is significantly undervalued, and even after an expected dividend cut, will offer an attractive yield.
Stocks Have Bounced Back, but the Market Remains Significantly Undervalued
Both value and growth stocks look cheap, and the communication services sector is the biggest bargain.
4 Stock Sectors to Skip
These sectors present few opportunities in the third quarter of 2022.
Dividend Stock Deep Dive: Midyear 2022 Picks
Dividend stocks have held up relatively well so far this year. Can the trend continue?
Where to Invest Your Money in Q3 2022
Here’s where opportunities lie in the new quarter—and some undervalued high-quality stocks to consider.
Spending Is Shifting Back to Services; Here’s Where to Invest Now
As the pandemic recedes, consumer spending behavior will normalize and shift back toward services and away from goods.
9 Cheap Defensive Stocks
The earnings of these companies are less sensitive to the economy—and their stocks are undervalued, too.
After Tough Second Quarter, U.S. Stocks Look Cheap
We think now is the time to be adding judiciously to equities, not reducing them.
5 Undervalued Cybersecurity Stocks
Cybersecurity industry is a fast-growing, high-margin industry, and the stocks are attractive right now.
How to Invest During a Bear Market
And 13 stocks that are trading at rarely seen margins of safety.
U.S. Stocks Are Trading at a Rarely Seen Discount
Even with the market's bounce, the selloff provides a chance to invest in significantly undervalued stocks.
What's Driving the Latest Big Drop in Stocks?
Worries about inflation’s toll on earnings spark Wednesday’s 4% plunge, but stocks are now far undervalued.
The Market Is Undervalued But Concentrated
These four mega-cap stocks are pushing down overall valuations.
Is Twitter a Buy Below Elon Musk’s Offer Price?
There’s an opportunity to profit on an expected closing of the deal, but it’s a risky trade.
2022 Selloff Has Left the U.S. Stock Market Undervalued
Flight to safety pushes defensive sectors too high while leaving growth stocks attractively priced.
5 Risks Facing the Market Right Now
Inflation, rising interest rates, geopolitical risks, and other things to keep your eye on.
Market Outlook: After a First-Quarter Decline, Equities Trading at a Slight Discount
Value and small-cap stocks are the most attractive.
What Rising Interest Rates May Mean for Stocks and Bonds
And where to invest new money today.
Why High-Yield Bonds Should Outperform in 2022
In an environment of rising interest rates and healthy economic growth, we continue to favor high-yield corporate bonds.
15 Cheap Growth Stocks Amid the Volatility
Growth stocks are now broadly undervalued and the overall market now looks fairly priced.
Why Are Wide-Moat Stocks Underperforming?
High-quality stocks with competitive advantages should outperform during tough markets. They aren't this year.
Pullback an Opportunity to Pick Up Undervalued Stocks
Value remains attractive, but time to rotate back into growth … and even some tech.
12 Overvalued Mega-Cap Stocks to Avoid
After a decade of outperformance, these mega-cap stocks are significantly overvalued today.
11 Undervalued Mega-Cap Stocks to Consider
The downturn in the market this year has pushed numerous mega-cap stocks into buying range.
Why Have Tech Stocks Been Hit So Hard?
U.S. markets are selling off as 2022 faces headwinds, but the widespread downturn has pushed many tech stocks down too far.
AT&T Shares Deserve a Return Call
AT&T is significantly undervalued, and even after an expected dividend cut, will offer an attractive yield.
The Stock Market Faces Strong Headwinds in 2022
We see opportunity in smaller companies and value stocks today.
Where to Invest in Bonds for 2022
Corporate bonds should continue to outperform amid strong economic growth and rising interest rates.
An Investor's Guide to 2021 Holiday Sales
The market has already baked many retailers’ holiday sales potential into pricing, but there are still opportunities.
What Will Drive Holiday Sales in 2021?
A confluence of factors will bolster consumers' holiday spending this year.
Facebook Is Under Fire, but It's Also Undervalued
With a new name--Meta Platforms--the company still faces controversy, but it's also the most attractive social-media play in our coverage.
6 Inflation-Tough Stocks
We think these moaty companies will remain resilient in the face of inflation and ongoing supply chain challenges.
What to Watch for in This Week's Earnings Reports
Keep an eye on what companies are saying about inflation and supply disruptions.
Energy Stocks Surged, Yet Still Undervalued
Supply and demand imbalances have pushed oil and natural gas prices higher. Although energy stock prices have jumped, we still see value for long-term investors.
Morningstar's Outlook for the Fourth Quarter
And a recap of the past quarter.
Market Outlook: Investors Revive Pandemic Playbook
Best opportunities remain in value and small caps.
9 Undervalued Chinese Stocks That Have Been Oversold
For those willing to take on extra risk, the Chinese equity market’s recent correction provides investors with undervalued opportunities.
What's Undervalued Today?
We take a look, sector by sector.
Should I Buy Tesla Stock Now?
We take a fresh look at Tesla with updated projections for electric vehicle adoption and higher profitability.
U.S. Equity Market Valuation Update: Stick With Value
Value stocks struggled in July, but we continue to see this category as the best opportunity for long-term investors.
What the American Jobs Plan Means for Stocks
The path to passing the plan may have changed, but its expected impact on the market has not.
What Investors Can Expect in 2021's Second Half
The market is currently trading at a 4% premium, but certain sectors are still undervalued.