Top Pros' Top Picks 05/20/25

Market Minute ⏱️ 5/20/25: Markets 1, Moody's 0.

Mike Larson | Editor-in-Chief

US stocks and bonds battled back from a lousy open yesterday, and they’re mixed in the early going today. Gold is up a bit, while the dollar and crude oil are down a bit. Bitcoin traded closer to a new high before easing back.

The score yesterday: Stock markets 1, Moody’s Ratings 0. In other words, buyers stepped in after early weakness caused by the Moody’s debt downgrade on Friday – and all three major indices closed (slightly) in the green. It was the S&P 500’s sixth “up” day in a row.

Global Yield Curves (US, UK, Germany, Canada, Japan)

Still, concerns remain about the US debt and deficit outlook. The sovereign debt-buying strike just went global, too. A Japanese government bond auction bombed, with demand the weakest since 2012. Yields on 20-year Japanese bonds jumped in response, hitting the highest since 2000. Among major economies (the US, UK, Germany, Canada, Japan, as shown in the chart above), the UK sports the highest 10-year yield at 4.67% while Japan has the lowest at 1.51%.

On the earnings front, home improvement retailer Home Depot Inc. (HD) reported a mixed bag of results. Profit fell 4.9% to $3.45 per share even as sales rose 9.4% to $39.8 billion. While transaction growth was solid, average ticket size stagnated – and questions remain about the impact of tariffs on the company’s bottom line.

Finally, we just saw a hugely successful Initial Public Offering (IPO) – in Hong Kong. The Chinese battery giant Contemporary Amperex Technology – or CATL – raised $4.6 billion in its IPO. Then its shares surged 16%. CATL is a major player in the global Electric Vehicle (EV) market, with more than 17 million EVs powered by its batteries. The company operates in 64 different countries and regions.

Hougan: Yes, Bitcoin COULD Hit $200,000 this Year

• RING: A Global Mining Fund to Help You Ride the Rally in Gold
  👉️ TICKERS: AEM, AU, B, KGC, NEM, RING
  Gold continues to deliver higher returns than stocks. Mining companies have built-in leverage. So, their stocks typically move in the same direction as gold, but by greater percentages. I like the iShares MSCI Global Gold Miners ETF (RING), says Bob Carlson, editor of Retirement Watch.

• Dollar: Will the Greenback's Recent Giveback Persist?
  👉️ TICKER: UUP
  The dollar, the world’s dominant currency, has been in hot demand since the start of the pandemic. But that trend has started to unwind a bit in 2025. Year-to-date, the dollar has given back 3% against a worldwide trade-weighted index and 5% compared to an index of advanced economy currencies, notes John Eade, president of Argus Research.

🎲 Level up your investing game at the ‘25 MoneyShow Masters Symposium Las Vegas (July 15-17) at Caesars Palace. Register now!