From Yahoo Finance: 2025-04-23 18:14:00

In a recent article, Ameriprise Financial reported tough initial months for investors in 2025, with US stock indexes ending the first quarter lower due to tariff uncertainty, increasing recession odds, and global trade frictions. Maintaining a balanced perspective and a diversified portfolio are advised during market stress.

Q2 2025 is expected to bring more uncertainty and volatility for investors, but a bullish case for stocks is anticipated long term. Investors are urged to maintain a well-diversified portfolio, focus on high-quality assets, and take a longer-term view to leverage opportunities during market stress.

Ameriprise Financial suggests that despite tariff dynamics, current stock levels could offer attractive entry points for investors planning to dollar-cost average during volatility. The US economy and S&P 500 Index corporate profits are projected to grow positively in H1 2025, supporting a potential long-term investment strategy.

With corporate profit margins strong relative to history, companies may navigate tariff concerns and stabilize demand and profits. Historically, stock performance improves over 6 to 12 months when there is clarity amidst weak sentiment and policy uncertainty, according to the investment management firm.

AT&T Inc. (T) is highlighted as a top pick by Ameriprise Financial due to its telecommunications and technology services, market position, investments in 5G, and brand equity. Analysts believe the company’s business will remain resilient amidst potential disruptions from trade and tariff issues, with growth expected in the long term.

TCW Funds highlighted AT&T Inc. (T) as a prospective investment, citing its commitment to bridging the digital divide, focus on sustainability, and strategic restructuring efforts. The company’s investments in digital infrastructure and network enhancements position it for improved earnings and cash flow, reducing uncertainty for shareholders.

Despite ranking 9th on the list of best stocks to buy and hold for 20 years, AT&T Inc. (T) faces competition from deeply undervalued AI stocks that may offer higher returns in a shorter timeframe. Investors seeking promising AI stocks with potential for massive gains are advised to explore opportunities beyond T’s long-term prospects.

Read more: Is AT&T Inc. (T) the Best Stock to Buy and Hold for 20 Years?