First-Half 2025 Stock Review And Second-Half Picks

Summary

  • The S&P 500 rebounded strongly in H1 2025, driven by easing tariffs and bullish momentum, with many stocks hitting all-time highs.
  • Chasing high-flying stocks may be risky due to a negative margin of safety; focus on sentiment, quality, and fair value.
  • Second-half opportunities favor AI leaders like Nvidia, Microsoft, and Alphabet, while the retail and vaccine sectors face headwinds.
  • The market outlook hinges on tariff negotiations; large-cap ETFs like VOO, IVV, and DIA offer stability amid expected volatility.
  • Sectors and stocks to avoid in H2 are discussed.
  • Looking for a helping hand in the market? Members of DIY Value Investing get exclusive ideas and guidance to navigate any climate. Learn More »

2025 with ascending arrow on blackboard

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In the first half of 2025, the S&P 500 (NYSEARCA:SPY) staged a remarkable rebound. It returned around 5.5%. The buying momentum accelerated in the second quarter, reversing a steep sell-off after President Trump’s Liberation Day tariff announcement. Instead

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This article was written by

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Chris Lau is an individual investor and economist with 30 years of experience covering life science, technology, and dividend-growth income stocks. He has degrees in Microbiology and Economics.

Chris runs the investing group DIY Value Investing where he shares his top stock picks of undervalued stocks with catalysts for upside, dividend-income recommendations with quant and payment calendar tracking, high upside plays, and research requests to help you become a better do-it-yourself investor. Learn more.

The returns from the public articles are: 2023 Average Return: 8.4% 2022 Average Return: 6.9% 2021 Average Return 29.9% 2020.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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