What Should I Buy, Anyway? 2025 Edition — Part One

Another day, another tumble — welcome to Wall Street in the era of tariffs, trade wars, and economic tumult. But as we’ve said before, these declines could be your gain if you have the cash, patience, and pain tolerance.

But how do you take advantage? That’s a question we receive a lot at the Joe. While our stories generally star single stocks, many of our readers want to know how they can capitalize on this moment in markets. We’ve compiled a list of the cheapest, most straightforward strategies.

What should you buy, anyway? While it’s never a wise idea to blow up your financial plan in the middle of market chaos, opportunities like the one presented by the Trump administration might offer investors a chance to right-size their 401(k) allocation, their Roth IRA, their 529, and their individual portfolio. Going forward, we plan to prepare a once or twice-a-year list of some of the prevailing trades that we’ve covered — and how you might approach them, say, with an ETF or other fund. Keep in mind: none of the funds or strategies below are recommendations. For each investor, measuring the moment and doing due diligence is essential to come to your own conclusions. But in any case, these are the five biggest trades of the moment:

• Buying the US largecap dip: Even though there is considerable concern about the US markets and economy under the Trump tariffs, the S&P 500’s recent volatility has offered investors opportunities to buy at valuations that could be attractive over a long time period. The Fidelity 500 Index FundFXAIX
  and SPDR Portfolio S&P 500 ETFSPLG
  are the two cheapest funds that aim to mimic the returns of the S&P 500.
• Long Europe: To start 2025, Europe’s STOXX 600 index reached all-time highs, and FT identified that a number of European bank stocks had outperformed America’s high-flying Mag7 tech companies. Even though European names have declined on tariff turmoil, the vibe shift in Europe is undeniable — with the continent shoring up investment in infrastructure and defense after years of fiscal spending caps. The Vanguard European Stock IndexVGK
  is the largest and most affordable euro-centric ETF.
• China’s Terrific 10: On Wednesday, Trump announced that he would impose even more tariffs on China, bringing the US tariff rate on the Asian market to 104%. Still, the country insists that it can outlast Trump’s skirmishing by front-loading economic stimulus and stirring domestic industry to action. Chinese stocks have always been a risky bet, but Chinese tech stocks like the Terrific 10 stand out in the age of AI — and down from recent highs, they could have rebound potential in investors’ portfolios. The KraneShares CSI China Internet ETFKWEB
  is the best way to capture the country’s AI potential and tech marketplace.
• Safe havens: The White House’s idea of ‘economic shock therapy’ has only had a modest impact on the economy — and, therefore, interest rates and inflation. That might be about to change. As the Republican administration induces new anxieties about the economy, the iShares 20+ Year Treasury Bond ETFTLT
  is looking increasingly attractive — paying 4.25% as of Apr. 8 and offering potential for upside if and when rate cuts come. And gold, arguably the king of safe havens, is one of the few assets that has remained consistent in a sea of red. Investors can buy the SPDR Gold TrustGLD
  for exposure to the precious metal — just mind the 0.40% expense ratio.
• Raising international allocation: As the US government seeks to rein in spending, stimulus, and spending on research and other economically productive activity, its markets could begin to underperform countries that are taking the opposite approach — such as the EU and Asia. At the same time, international names might be able to skirt away from most of the consequences of the trade war and recover faster from the global market crash. This might lead some investors to rejig their overseas exposures, looking for growth and outperformance from markets that have historically boasted lower growth — funds like the Vanguard Developed Markets ETFVEA
  and Vanguard Emerging Markets ETFVWO
  are the most popular among investors.

Other Spring Cleaning Notes

As soon as markets go up, they can go down — and vice versa. Still, investors might be wondering if there’s anything else they should do right now. Generally, it’s best you don’t — unless you really know what you’re doing.

• One thing not to do? Sell assets in a retirement portfolio. Since you don’t realize capital gains or losses in these portfolios, selling at a loss will make you go broke, make no mistake.
• If you own individual stocks or funds in a taxable portfolio, you might consider tax-loss harvesting (TLH) — selling positions at a loss and swapping into similar ETFs for 30 days before potentially buying back the original holding.

Got a question? Let’s hear it. We’re interested in digging in and researching questions from our audience — especially given the current market environment — and we aim to keep a data-oriented approach throughout. If you’re curious about something, scroll down to the bottom of our newsletter to provide feedback and drop us a line. However, as a reminder, we are not financial advisors, and just because a trade is ‘popular’ doesn’t mean it will outperform the market or add value to your portfolio.

Words to the wise: Ultimately, all financial decisions should be undertaken with considerable due diligence. If that means doing your own research and becoming well-read, great. If you’re intimidated by numbers, portfolio allocations, and other factors? Consider the advice of a financial planner who can help steer you through times of uncertainty like these.