Safety is boring—but boring can be the smartest play when markets are stretched thin. With the S&P 500 trading near record highs and the Federal Reserve cutting rates, investors should reconsider the assumption that this cycle will play out like the last. During COVID-19, rate cuts were purely stimulative, aimed at preventing deflation. Today, with inflation still hovering around 3%, the dynamics are very different.
That’s why stable, cash-generating businesses may become a preferred option for investors seeking shelter from volatility. Enter Chewy (NYSE: CHWY). Its subscription-based model offers predictability, and its loyal customer base provides a foundation for consistent revenue. These are the kinds of traits that tend to shine in uncertain markets.
