The bond market is flashing a warning.
Treasury yields have been climbing as investors react to higher energy prices and the inflationary pressure that comes with them. And that is putting the Federal Reserve in a difficult spot.
In my view, the Fed should not raise interest rates simply because oil, diesel and jet fuel prices are moving higher. There is very little monetary policy can do to solve an energy-price shock.
But Fed Chair Kevin Warsh has made it clear that he does not want to fight market rates.
And with market yields still elevated, I believe next week’s Federal Open Market Committee meeting could become much more contentious than investors expect.
That does not mean I’m sitting on the sidelines.
In fact, I’m still buying.
In this week’s Navellier Market Buzz, I explain why the bond vigilantes are back, what higher energy prices could mean for the Fed and the economy and which stocks I believe are positioned to benefit from the current environment.
That includes two energy names benefiting from stronger refining economics, a technology giant with a major new product catalyst and a shipping stock benefiting from longer global trade routes.
Click the image below to watch now.
Looking Past the Noise
The four stocks I discussed in this week’s Navellier Market Buzz are very different businesses.
But the reason I’m buying them is the same: Their fundamentals are strong, and they are benefiting from clear trends in the economy.
That is exactly what my Stock Grader system (subscription required) is designed to identify.
We recently completed our latest quarterly backtest, and I have to tell you, the results were better than I expected.
The market went through plenty of turbulence this summer. We had July’s mean reversion, the forced liquidation of the Situational Awareness hedge fund and some wild swings in AI-related stocks.
Yet the stocks with the strongest fundamentals still separated themselves from the pack. Specifically, the top 20% of Stock Grader – our A-rated stocks – are performing especially well.
Heading into the fall, I expect that trend to continue. But I’m also watching closely where the next group of market leaders may come from.
In fact, my research team and I have spent months studying a massive new AI initiative taking shape across America’s national laboratories.
I call it the AI Reset of 2026.
And I believe the companies helping build and power this new infrastructure could represent the next major group of AI winners.
I recently put together a special presentation explaining what is coming, which companies I believe are best positioned and what investors should be watching as this next phase unfolds.
Click here to watch my AI Reset presentation now.
Sincerely,
Louis Navellier
Editor, Market 360
The post 4 Stocks to Buy Now as the Fed Faces a Big Decision appeared first on InvestorPlace.
