The Smart Money Favors Dividend ETFs Over Tech Stocks in Volatile Market
It has been a volatile start to 2025 for growth and technology stocks. While many have raced out to juicy gains, we’ve also seen previous investor favorites like Applovin and Palantir nosedive 25%, illustrating the true extent of sentiment volatility pervading the market. Investors are concerned about inflation, the effects of potential tariffs, and elevated valuations ripening for a fall. This backdrop makes it as good a time as any to return to basics and consider investing in some tried-and-true value-oriented dividend stocks.
- As market volatility continues to test investor patience, dividend ETFs like SCHD offer a welcome respite from the noise, providing a steady stream of income that can help ride out turbulent markets.
- What role will dividend-focused strategies play in navigating the next phase of market downturns, and how might they serve as a hedge against potential losses in growth-oriented assets?