The stock market is grappling with major uncertainty just two weeks into 2025.
While the broader market might remain choppy or range-bound, there are pockets of opportunity for those who know where to look. My focus this year is on non-correlated assets, energy plays and sectors that can withstand high volatility and rising yields.
Here are my top trade ideas for 2025.
Energy Stocks: Where the Flow of Money Begins
Money always flows from consumers to producers — a principle that holds true no matter the market conditions. In 2025, energy stocks stand out as top picks because they are less correlated with overall stock market performance and benefit from the ongoing geopolitical and economic shifts.
Among my favorites is Williams Companies (WMB). Timing and positioning look excellent for this stock, making it a standout in the Energy sector.
Utilities: High Yield Meets Stability
Utilities are another area of interest, especially as rising bond yields have placed pressure on the sector.
One name to watch is Vistra (VST).
With yields on utilities rising, the sector is offering compelling dividend opportunities that can offset high bond yields. The recent sell-off caused by California wildfires has left many utility stocks undervalued, creating opportunities for investors who are willing to take a long-term view.
Work-From-Home Reversal: A Bearish Outlook
Shifting gears, I’m also bearish on work-from-home trends. Policies encouraging the return to offices and the repatriation of industries could put pressure on companies reliant on remote work.
Zoom (ZM) is one example of a stock that may face headwinds as its core business becomes less relevant. Additionally, I’m monitoring the Direxion Work-From-Home ETF (WFH) for short opportunities, with a focus on its most vulnerable components.
In 2025, liquidity remains a key concern, but opportunities exist in sectors that are less tied to overall market trends.
Energy and utilities offer stability and income, while a reversal in work-from-home dynamics creates potential short plays. By focusing on where money is treated best, investors can navigate this uncertain market with confidence.
Kane Shieh
Kane Shieh Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
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