The Tesla Shock Nobody Sees Coming

While headlines scream "Tesla is doomed"...Jeff Brown has uncovered a revolutionary AI breakthrough buried inside Tesla's labs. One that is helping AI escape from our computer screens and manifest itself here in the real world all while creating a 25,000% growth market explosion starting as early as October 23rd.

3 principles to invest by, whatever comes next

Dan Lefkovitz of Morningstar
August 21, 2025

I recently opened a second-quarter investment account statement, not to euphoria--but relief.

Let's not forget, US equities flirted with a bear market earlier this year. There were concerns that China's DeepSeek artificial intelligence would bring down US technology titans. There were the tariffs.

Yet, here we sit in the third quarter of 2025 with the Morningstar US Market Index up nearly 8% for the year and the Morningstar US Core Bond Index having returned more than 3%.

Ahead of us lie multiple pathways. Economic data and earnings announcements will provide direction, but there are also "unknown unknowns" that could alter our course.

Here are three investment principles to keep in mind.

Principle 1: Where the market goes, nobody knows

Coming into the year, how many pundits talked about AI out of China challenging US tech stocks? Did anyone expect tariffs to be such a factor?

Though 2025 has had its plot twists, changes in market direction are hardly unusual.

Consider thatstocks came into summer 2024 on a tear, beforesentiment turned. A series of releases--jobs, inflation, and earnings--compounded fears of a narrow and pricey market. Somehow, both an unexpected interest rate hike by the Bank of Japan and an expected rate cut by the Fed triggered selloffs.

But markets recovered. Election results in November sparked a powerful rally.

So, w here we go from here is anyone's guess. But I'll cite a story about how dead investors outperform living ones because they don't trade. Buy-and-hold has been a great strategy for long-term investors.

Principle 2: Global investing can pay off

Some think you don't need to own anything other than US equities. But I'llnote that the Morningstar Global Markets ex-US Index has trounced its US equivalent so far in 2025.

What's behind the turnaround? The dollar weakening against many other currencies is part of the story. But markets in many regions--Europe, Latin America, and India--have roared to life this year.

To me, global investing is about casting the net as widely as possible. So, just as some argue that US-based multinationals provide American investors with global exposure, you could also argue that they're not fully exposed to the US, from a revenue perspective, with a purely domestic portfolio.

Principle 3: Bonds aren't broken

The equity market's extreme volatility in 2025 makes bonds look like steady-Eddies.

While US stocks were in free fall from late February through early April, the Morningstar US Core Bond Index gained 1.3%. Bonds diversified equities, serving as portfolio ballast.

Bonds face a lot of "headline risk." There are debt and deficit concerns. And the shadow of 2022's " worst bond market ever " lingers.

While the risks are undeniable, fixed income is also the victim of fearmongering. Not only have bonds diversified stocks, they're also providing above-inflation income streams. Thanks to the painful interest rate hikes of 2022-23, yields on fixed income are at levels not seen since the mid-2000s.

The road ahead

We're likely to see more twists before 2025 is out.

Short-term asset-price fluctuations are driven by a complex interplay of variables--macro and micro, fundamental and technical.

Longer term, valuation can be a useful guide. According to my Morningstar Equity Research colleagues, the US stock market looked a bit pricey coming into the second half of 2025--not in dangerous bubble territory, but "trading at a slight premium." The bargains cluster on the value side of the market and in smaller-cap stocks.

Meanwhile, my colleagues in Morningstar Investment Management continue to see upside in bonds and international equities. As always, a buy-and-hold mindset and a diversified portfolio remain sensible investment tactics.

____

This article was provided to The Associated Press by Morningstar. For more markets content, go to https://www.morningstar.com/markets.

Dan Lefkovitz is a strategist for Morningstar Indexes.

Continue Reading...

Popular

Mining Earnings Could Drop 25 Percent From Nature-Related Risks, Report

With commodities like gold and silver becoming the leading performers year-to-date, financial markets have caught a precious metal bug again. Yet, the latest research shows that nature-related risks could undermine the sector’s earnings by as much as 25%.

Trump Slams Report Alleging Hundreds of FBI Agents Were Embedded in Capitol Riot Crowd

President Trump has expressed his indignation over a report suggesting the involvement of 274 undercover FBI agents during the Capitol riot on January 6, 2021.

Jeff Brown: "I Warned You About Elon Musk..." - Ad

While everyone said Tesla was finished... On June 11, I predicted that we were on the cusp of one of the most shocking comebacks in Wall Street history. Sure enough, Tesla is now up 25% and recovered all 2025 losses. But this is just the beginning of Elon's $25 trillion breakthrough.

Donald Trump's Looming Shutdown Could Trigger Mass Layoffs, Slash Regulations and Deploy Troops

President Trump administration is preparing for a potential government shutdown that could lead to thousands of federal employees being laid off and significant changes in the functioning of various departments.

Asian shares trade mixed after US stocks set more records

TOKYO (AP) — Asian shares were trading mixed Tuesday in the absence of key market-driving news in the region, after a continued on Wall Street.

Gold Alert: Extraordinary Upside in One Stock (Not a Miner) - Ad

Gold has hit all-time highs, breaking $3,600 an ounce - but history shows it could be on the verge of its biggest bull run in over half a century... triggered by a likely major event, eerily similar to what happened in the 1970s. (It's NOT inflation or anything you're likely expecting.) Now, a top analyst says you can capture ALL of the upside without touching a risky miner or a boring exchange-traded fund. He sees extraordinary potential gains long term with very little risk.

Cathie Wood, Dan Ives Align On These 11 AI Stock Picks — Some Might Surprise You

Cathie Wood and Dan Ives have 11 stocks in common across ETFs. A look at the AI stocks the two key figures are betting on.

Bernie Sanders Rips Into Elon Musk's Tesla Pay Package — But Chamath Palihapitiya Fires Back, Defending It As 'Earned'

Sen. Bernie Sanders blasted Tesla's proposed $1 trillion pay package for Elon Musk as "insane," while Chamath Palihapitiya countered that Musk would only earn it through revolutionary products driving massive consumer adoption.

Is This Elon's Worst Nightmare? - Ad

Elon's empire looks doomed - crashing sales, lost tax credits, and media backlash. But behind the scenes, Tesla is about to unleash a breakthrough Forbes calls a "multi-trillion-dollar opportunity." It's not the end - it's the start of a 25,000% AI comeback.

Howard Stern walks away from SiriusXM after two decades

NEW YORK (AP) — the popular radio host who gave a massive boost to the nascent satellite radio business when he signed a blockbuster, multimillion dollar contract for SiriusXM almost two decades ago, has abruptly left the company.

We've Seen This Before... and It Didn't End Well - Ad

Strange events are unfolding in the global financial system. A monetary reset dubbed the "Mar-a-Lago Accord" is quietly in motion, and the financial elite are already taking protective action. If history is any guide, you could lose up to 40% of your wealth in the next two years. Move your money before it's too late.

South Korean workers released after days of detention in Georgia return home

INCHEON, South Korea (AP) — A plane carrying more than 300 South Korean workers after days of detention in Georgia landed in South Korea on Friday.

Trump's Radical Plans for the Dollar - Ad

The Fed just slashed rates... yet mortgages have already soared higher. Meanwhile, Trump has his own plan for the dollar - a radical upgrade to our currency, already moving more money than Visa and Mastercard combined. Tech investor Eric Wade calls it the "Smart Dollar."

Trump Makes Chinese Stocks Great Again — Until Someone Mentions Tariffs

President Donald Trump's recent optimistic remarks on negotiations with China have given a boost to U.S.-listed Chinese stocks. 

Is Elon's Empire Crumbling? - Ad

Jeff Brown - the legend who called Tesla and Nvidia early - says Elon is about to launch a $25T AI revolution. This isn't another chatbot. It's real-world AI that could 14X the impact of ChatGPT. But after October 23rd, it may be too late.

FanDuel agrees to pay Jaguars roughly $5M to offset losses from ex-employee's theft, AP source says

JACKSONVILLE, Fla. (AP) — FanDuel has agreed to pay the Jacksonville Jaguars roughly $5 million to help offset the nearly $20 million that a and deposited at the sportsbook, a person familiar with discussions said Friday.

Bank Of America Strategist Sounds Alarm On Potential AI Stock Market Bubble: 'It Better Be Different This Time'

Bank of America strategist Michael Hartnett has voiced concerns about a possible bubble in the AI stock market. This comes in light of valuation metrics reaching historic highs.

[Revealed] Trump's Next AI Executive Orders? - Ad

A White House insider with direct ties to Trump's inner circle just revealed what he calls "Manhattan II" - a potential $2.2 trillion AI initiative set to launch as soon as Oct 15. He says this could mirror past U.S. projects that minted fortunes - with small firms soaring 5,000% to 10,000% over two decades. And now he's giving away his #1 stock pick for free before the deadline.

US official sees Greece as hub to boost American natural gas exports

ATHENS, Greece (AP) — A U.S. Cabinet official overseeing a planned expansion of natural gas exports to Europe said Thursday that could play a key role through its pipeline system that extends across the region.

Elon's $25 Trillion Confession - Ad

Elon Musk: "Tesla will become a $25 trillion company." That would make Tesla 8x bigger than Apple today. How is that possible? He admits it's all thanks to this one AI breakthrough that will take AI out of our computer screens and manifest a 250x boom here in the real world.

AI Isn't The Next Dot-Com Bubble - Here's Why

Here's why today's AI boom stands apart from the dot-com bust—exploring key differences, risks, and economic impact.

October 16 Changes the Microchip Game - and Investing - Ad

George Gilder-dubbed "America's #1 Futurist"-says while everyone's chasing AI, the real opportunity is in a 4-nanometer tech millions of times more complex. It's not another chip - it replaces them. Now built in Arizona, Gilder says 3 companies tied to this "super-convergence" could soar.

IAEA Raises Nuclear Power Projections, US Needs More Uranium

IAEA raises nuclear power projections, citing global consensus on its importance for clean and reliable energy. US seeks to boost domestic uranium supply.

How 4 key infrastructure projects centered in Italy will reshape the European travel map

MILAN (AP) — Workers will begin drilling and blasting open the first tunnel connecting Austria to Italy under the Brenner Pass through the Alps on Thursday, marking a major milestone in a series of ambitious European Union projects that will accelerate passenger train travel between metropolitan centers and shift freight off the roads and onto rails.

The Tesla Shock Nobody Sees Coming - Ad

While headlines scream "Tesla is doomed"...Jeff Brown has uncovered a revolutionary AI breakthrough buried inside Tesla's labs. One that is helping AI escape from our computer screens and manifest itself here in the real world all while creating a 25,000% growth market explosion starting as early as October 23rd.

Cathie Wood's Ark Dumps $2.1 Million Of This Hot AI Stock Despite Recent Acquisition Boost

On Tuesday, Cathie Wood-led Ark Invest sold shares of Tempus AI Inc (NASDAQ: TEM) through ARK Genomic Revolution ETF (ARKG) and ARK Innovation ETF (ARKK) totaling $2.1 million. This follows Tempus AI's recent acquisition and mixed analyst ratings. Other key trades include purchases of Prime Medicine Inc (PRME) and Twist Bioscience Corp (TWST).

Labor Dispute Eases As UAW, GE Aerospace Agree On Tentative Pact

UAW members at GE Aerospace plants in Ohio and Kentucky reached a tentative deal, with a ratification vote set for Sept. 19.

Jeff Brown: "I Warned You About Elon Musk..." - Ad

While everyone said Tesla was finished... On June 11, I predicted that we were on the cusp of one of the most shocking comebacks in Wall Street history. Sure enough, Tesla is now up 25% and recovered all 2025 losses. But this is just the beginning of Elon's $25 trillion breakthrough.

Trump files $15 billion defamation lawsuit against The New York Times

NEW YORK (AP) — President Donald Trump filed a $15 billion defamation lawsuit against The New York Times and four of its journalists on Monday, according to court documents.

FuelCell Energy Stock Jumps But Analysts Warn Shares Look Richly Valued

FuelCell Energy (NASDAQ: FCEL) saw big revenue jump in Q3, despite ongoing losses. JPMorgan analyst remains cautious, citing weak order momentum.

Gold Alert: Extraordinary Upside in One Stock (Not a Miner) - Ad

Gold has hit all-time highs, breaking $3,600 an ounce - but history shows it could be on the verge of its biggest bull run in over half a century... triggered by a likely major event, eerily similar to what happened in the 1970s. (It's NOT inflation or anything you're likely expecting.) Now, a top analyst says you can capture ALL of the upside without touching a risky miner or a boring exchange-traded fund. He sees extraordinary potential gains long term with very little risk.

Trump Ally Charlie Kirk Assassinated At Utah Event, FBI Releases Initial Suspect As Kash Patel Vows 'Transparency'

Conservative political activist Charlie Kirk was shot and killed on Wednesday while speaking at Utah Valley University in Orem, sparking a federal investigation that has taken an unusual turn with the FBI's public handling of suspect information on social media.

Canada's Carney heads to Mexico to discuss trade before a review of their US trade deal

TORONTO (AP) — Canadian Prime Minister Mark Carney heads to Mexico on Thursday in an effort to diversify trade as America’s neighbors brace for a review of the free trade deal with United States.

Is This Elon's Worst Nightmare? - Ad

Elon's empire looks doomed - crashing sales, lost tax credits, and media backlash. But behind the scenes, Tesla is about to unleash a breakthrough Forbes calls a "multi-trillion-dollar opportunity." It's not the end - it's the start of a 25,000% AI comeback.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright finstrategist.com
Privacy Policy | Terms of Service