13 Best Low Volatility Stocks to Buy According to Hedge Funds

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In this article, we discuss the 13 best low volatility stocks to buy according to hedge funds. To skip the detailed analysis of the current market conditions, go directly to the 5 Best Low Volatility Stocks to Buy According to Hedge Funds.

The S&P 500 had a remarkable year in 2023 and the first quarter of this year presented itself as if the bull run will keep charging toward growth. However, it has taken a step back over the past month and declined nearly 2.5%. In addition, the index showed a loss of 4.4% since its peak in March, at April 17 market close. On April 16, US Treasury bonds hit their highest in the last six months as geopolitical conditions surrounding the Middle East conflict and the high interest rates continue to threaten the global financial markets. On April 16, the US 10-year Treasury yield was 4.67%. Furthermore, The Merrill Lynch Option Volatility Estimate Index reached its highest since January 1 on April 15 to 121.15. While the CBOE Volatility Index (^VIX) is still under 20, it touched its highest point since October 30. VIX was at 19.23 on April 15.

Maybe It's Not All Doom and Gloom

Although some investors like Cole Smead of Smead Capital have quite a bleak view of the US market over the next decade, many others still consider the current conditions nothing more than a little hitch. Smead sees a significant chance of interest rate hikes rather than cuts and predicts negative real returns from the S&P 500 over the next decade. For more information on this, go to 12 Ridiculously Cheap Stocks to Buy.

According to a BlackRock, Inc. (NYSE:BLK) report published on April 14, the firm sees a shift in earnings growth beyond the tech sector, particularly toward industrials and materials. The firm says that despite the concerns over Middle East tensions impacting crude oil prices and inflation, the overall performance of the U.S. economy has been robust. BlackRock, Inc. (NYSE:BLK) believes that other indicators such as GDP growth, employment numbers, and consumer spending show that the economy is quite healthy. Moreover, analysts are predicting US corporate earnings to grow by 11% this year compared to the 7% historical average. BlackRock, Inc. (NYSE:BLK) made the following comments in its report:

“For Q1 earnings results now underway, we expect further strength for tech and other artificial intelligence (AI) beneficiaries. Yet we see earnings growth broadening out as consumers start to show some signs of fatigue and demand improves in other sectors. Earnings for energy and commodity producers are picking up after a rough two years. We think higher commodity prices can persist and boost both, with the FTSE/CoreCommodity CRB index up 14% this year and near a decade high.“