From Yahoo Finance: 2025-04-26 09:19:00

In a recent article, we explore the concept of “safe” stocks and why they are crucial in times of market uncertainty and global risks. Hedge funds are known for advocating safe stocks due to their reliability and resilience in the face of economic downturns.

Hedge funds are shifting away from consumer discretionary stocks as signs of a global recession become more apparent. This move suggests that hedge funds are preparing for economic trouble, possibly a recession, according to experts.

A Goldman Sachs report indicates that the top 50 stocks preferred by hedge funds have collectively outperformed the broader market in 2025. This showcases the strategic advantage of following the investment strategies of hedge funds in navigating market volatility.

Low-risk stocks have consistently outperformed high-risk stocks in various markets worldwide, according to a study comparing low-volatility and high-volatility stocks. This challenges the traditional notion that higher returns are directly correlated with higher risks.

Exxon Mobil Corporation (XOM) is highlighted as one of the best safe stocks to buy according to hedge funds. With 104 hedge funds holding stakes in the company, XOM’s forward dividend and commitment to safe energy solutions position it as a reliable investment choice.

Analysts predict a 15% upside for Exxon Mobil Corporation (XOM), making it an attractive option for investors seeking safe stocks. Despite modest expectations for the broader market, XOM’s potential upside stands out, positioning it as a favorable investment opportunity.

Read more: Is Exxon Mobil Corporation (XOM) the Best Safe Stock to Buy According to Hedge Funds?