Have Stocks Bottomed?

Plus: Run, don't walk to buy I Bonds, undervalued REITS and 3 funds that are actually up this year. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=38029&elqTrackId=34c17ef5f09e47b49a91d2c075869428&elq=e6f4acff28b146159a382af7b12191c3&elqaid=38029&elqat=1&elqCampaignId=17822) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Twitter: [@LauricellaTom]( [Tom Lauricella] If you traveled back in time a year, or even a few months ago, and told just about any investor that there would be a stock-market rally on news that the [CPI rose 8.5%]( they’d have looked at you like you had three heads. And yet that is exactly what happened this week. There’s no question that since stocks hit their current bear-market lows on June 16, there’s been a change in tone in the market. Even as the [Federal Reserve is seen as poised]( to continue raising interest rates through the end of the year, stocks have been able to rally and hold those gains. As we mentioned a [couple weeks ago]( bear markets often include short-term rallies that peter out and send the markets back to new lows. In the always colorful lingo of Wall Street, these are known as bear traps. If the rally since mid-June is a bear trap, it certainly is doing a good job of not looking like one. So we [checked in with three market strategists]( and asked two questions: Is this rally the real thing? What are you watching to help answer that question? Amid the bounce in the stock market, there remain some intriguing opportunities for investors. We [took a deep dive]( into an often over-looked corner of the market: real estate investment trusts, aka REITs. Many of these high-dividend stocks are significantly undervalued having been knocked lower on recession fears. We offer up some appealing options for long-term investors. Meanwhile, Morningstar columnist John Rekenthaler examines another under-the-radar investment: [I Bonds](. In a new two-part series, Rekenthaler argues that investors should run, not walk to [purchase these government savings bonds](. It’s a great read on a way to lock in some attractive yields while waiting to figure out if stocks are in a real-deal rally. [Have Stocks Bottomed?]( [Have Stocks Bottomed?]( We asked three market strategists for their view on whether the worst is over. Sandy Ward [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [I Bonds Forever?]( [I Bonds Forever?]( The long-range outlook for this year’s investment fashion. John Rekenthaler [The 10 Most Undervalued Real Estate Investment Trusts]( [The 10 Most Undervalued Real Estate Investment Trusts]( Dividend-paying REITs have been knocked back by recession fears, but stocks including Simon Property Group, Welltower are looking cheap. Lauren Solberg [Do Dividend Stocks Provide Shelter From Recession?]( [Do Dividend Stocks Provide Shelter From Recession?]( Stocks with above-average payouts generally hold up better, but not all dividend strategies are created equal. Amy C. Arnott [3 Stock Funds That Are Up in a Down Year]( [3 Stock Funds That Are Up in a Down Year]( Energy and utility stocks helped lift the performance of these funds. Katherine Lynch [The 10 Best Companies to Invest in Now]( [The 10 Best Companies to Invest in Now]( The undervalued stocks of high-quality companies are compelling investments today. Susan Dziubinski Chart of the Week [CPI Report Shows Good News on Inflation, but Fed Rate Hikes Remain in the Cards]( [CPI Report Shows Good News on Inflation, but Fed Rate Hikes Remain in the Cards]( Easing supply chain pressures, falling energy prices should put continued downward pressure on inflation. Lauren Solberg, Preston Caldwell [Read More]( Share: [facebook]( [twitter]( [linkedin]( Popular This Week [Run, Don’t Walk, for I Bonds]( Now is the perfect time to buy today’s investment darlings. John Rekenthaler [Should You Take Your Required Minimum Distributions 'In Kind'?]( It won't change this year's tax bill, but it can help prevent investment slippage and lower taxes on future gains. Christine Benz [Vanguard Total Bond Market ETF Is Among the Best]( This fund's low costs and broad scope should help it outperform over the long term, says Morningstar's analyst. Lan Anh Tran [The Hidden Costs of IRA Rollovers]( Higher fees can significantly eat into returns when investors move out of their workplace plans. Mark Miller [What You Need to Know About Estate Planning]( The basic parts of a good estate plan and how to draw up one. Christine Benz [Cutting Through the Nonsense Around ESG]( Block out the noise and focus on these three points. Jon Hale Listen Now Get the latest investing insights and market updates with [Morningstar’s podcasts]( available on your iPhone, iPad, Android, PC, or smart speaker. Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2022 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602