"Macro and geopolitical worries are rising, and even a "safe haven" like gold has not been spared from the wave of recent choppiness. Whether it's the AI disruptive impact or the Iran-U.S. situation, it's quite unsettling to think about putting more money into the stock markets this March."
"The Schwab U.S. Dividend Equity ETF is shaping up to be a great bet to ring in 2026, with shares up close to 13% in the first two months of the year. It feels like the Schwab U.S. Dividend Equity ETF was built to thrive in environments like these, with a good mix of energy producers, telecom firms, consumer staples, and defense stocks."
"There's risk with timing plunging stocks as macro concerns soar, and that's why the safety trade might outperform for the time being, especially if the Iran-U.S. war lasts for longer than expected."
Macro and geopolitical uncertainties, including AI disruption and Iran-U.S. tensions, are creating market volatility that has affected even traditional safe havens like gold. While spring may bring stock market recovery, timing the market remains risky as macro concerns persist. Defensive strategies are likely to outperform in the near term, particularly if geopolitical tensions escalate. The Schwab U.S. Dividend Equity ETF (SCHD) has demonstrated resilience, gaining 13% year-to-date while sidestepping recent tech-driven turmoil. With a 3.3% yield and diversified holdings across energy, telecom, consumer staples, and defense sectors, it offers an attractive alternative to bonds. The State Street Utilities Sector SPDR ETF (XLU) provides another defensive option for investors seeking sector-specific exposure during uncertain market conditions.
Read at 24/7 Wall St.
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