Obesity Drug Stocks: Where to Invest Now

Plus: Nvidia 2023 Vs. Cisco 1999, where to invest in bonds, and will we avoid recession? [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=50390&elqTrackId=b74f7af4449846b0958fee4393b4c1a0&elq=78403470bc28403a8b0242b9254a456e&elqaid=50390&elqat=1&elqCampaignId=25220) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] In this week's newsletter: - [Obesity Drug Stocks: Where to Invest Now]( - [Where to Invest in Bonds in 2024]( - [Will We Avoid Recession?]( - [What to Watch in the Next Inflation Report]( - [Nvidia 2023 vs. Cisco 1999: Will History Repeat?]( - [Why Bonds Are Making a Huge Comeback]( “You should play the numbers!” That was an expression I would hear growing up in northern New Jersey. When you consider how well the economy has done this year, it would seem appropriate for 2023 to take those digits and place a side wager. As Sarah Hansen [writes]( the latest reading on the jobs market shows the U.S. economy threading the needle, with continued health in hiring even as inflation has come down. It’s especially impressive given that earlier this year, many investors and economists were pretty darn sure we would be in the midst of a recession by now. This has more analysts thinking we can maybe, just maybe avoid a recession altogether despite the Fed’s aggressive rate hikes. Will we be able to stick a soft landing? [We explore here]( what some economists are thinking. Of course, there’s a long road ahead, and it starts this coming week with the next inflation report. Check out our preview of [what to watch]( in the November CPI report. Also this coming week, Federal Reserve officials will be meeting to chart the next steps on interest rates. The central bank is expected to hold rates steady this time around, but the markets are betting on multiple rate cuts in 2024. What does this mean for your bond portfolio? Already bonds have [posted a huge rally]( after big losses just a few months ago. Now, Morningstar chief U.S. market strategist David Sekera [takes a look]( at where to invest in bonds in 2024, and how to position for falling rates. And while you’re at it, [check out this great article from John Rekenthaler]( on earnings yields vs. bond yields, and what that relationship suggests about future returns. Over in the stock market, Jocelyn Jovène reminds us about a company with cutting-edge products riding a wave of transformative technology, staggering growth, sky-high profit margins, and a stock rocketing to the moon. This was Cisco in 1999. Does its story hold lessons for investors looking at Nvidia today? [Click here to find out](. We’ve been [writing a lot about AI lately]( but this week we shifted gears to the pharma industry with another topic that’s been in the headlines: obesity drugs. Eli Lilly and Novo Nordisk are having their best years since 1997, thanks in large part to their obesity treatments. So what’s next? With help from Morningstar healthcare specialists Damien Conover and Karen Andersen, [we take a close look at this rapidly changing space]( and offer a roadmap for investors to consider. That’s it for this week! As always, check out our [Markets page]( for our latest coverage and live stock market updates, along with our [weekly calendar]( of key upcoming data and events. Did a friend forward this email? [Sign up here](. [Obesity Drug Stocks: Where to Invest Now]( [Obesity Drug Stocks: Where to Invest Now]( Eli Lilly and Novo Nordisk have staged big rallies. Here’s how investors can approach this potentially huge opportunity. Diana Anghel [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [Will We Actually Avoid a Recession?]( [Will We Actually Avoid a Recession?]( Why more market watchers are anticipating a soft landing for the economy. Sarah Hansen [November CPI Report Forecast Shows More Progress On Inflation]( [November CPI Report Forecast Shows More Progress On Inflation]( Analysts expect improvement as price deceleration continues, but the fight isn’t over yet. Sarah Hansen [November Jobs Report Shows Steady Strength In Hiring]( [November Jobs Report Shows Steady Strength In Hiring]( Expectations for Fed rate cuts pushed back on above-forecast job gains. Sarah Hansen [What’s Happening In the Markets This Week]( [What’s Happening In the Markets This Week]( CPI and Fed rate decision on deck. Tom Lauricella [Why Bonds Are Making a Huge Comeback]( [Why Bonds Are Making a Huge Comeback]( Traders are looking ahead to rate cuts as soon as March. Sarah Hansen [Earnings Yields vs. Bond Yields: Where Are They Today?]( [Earnings Yields vs. Bond Yields: Where Are They Today?]( And what that relationship indicates about future returns. John Rekenthaler [Where to Invest in Bonds in 2024]( [Where to Invest in Bonds in 2024]( Interest rates are projected to fall further, bolstering returns for longer-duration bonds. David Sekera [How Investors Can Take Advantage of the 5% Interest-Rate Reset]( [How Investors Can Take Advantage of the 5% Interest-Rate Reset]( Understanding the risks and opportunities in the new landscape. Hong Cheng, Brian Moriarty [Why Some Shares of This Bond Fund Are Now Rated Gold]( [Why Some Shares of This Bond Fund Are Now Rated Gold]( Upgrading American Funds Bond Fund of America and other November ratings highlights. Tony Thorn [After Earnings, Is Zscaler Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Zscaler Stock a Buy, a Sell, or Fairly Valued?]( With strong underlying drivers and earnings, here’s what we think of Zscaler stock. Malik Ahmed Khan [After Earnings, Is Salesforce Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Salesforce Stock a Buy, a Sell, or Fairly Valued?]( With revenue up 11%, here’s what we think of Salesforce stock. Dan Romanoff [After Earnings, Is Snowflake Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Snowflake Stock a Buy, a Sell, or Fairly Valued?]( With the company continuing to dominate among database management systems, here’s what we think of Snowflake stock. Julie Bhusal Sharma [5 Ultracheap Stocks to Buy With the Best Return on Investment]( [5 Ultracheap Stocks to Buy With the Best Return on Investment]( These undervalued companies have generated great returns in more ways than one. Susan Dziubinski [7 Undervalued Stocks to Buy Now That Could Move the Market in 2024]( [7 Undervalued Stocks to Buy Now That Could Move the Market in 2024]( Plus, our December stock market outlook and what Charlie Munger’s death means for Berkshire Hathaway. David Sekera, Susan Dziubinski [Should You T-Bill and Chill?]( [Should You T-Bill and Chill?]( The pros and cons of taking refuge in cash now that yields are hovering above 5%. Amy Arnott [3 ETFs That Benefit From Higher Interest Rates]( [3 ETFs That Benefit From Higher Interest Rates]( There’s much to love about higher interest rates. Bryan Armour [Tesla’s Anti-Union Model Faces a Massive Challenge In Europe]( [Tesla’s Anti-Union Model Faces a Massive Challenge In Europe]( A strike by Swedish mechanics has snowballed, with more unions joining actions against Tesla. Johanna Englundh [The Santa Claus Rally Came Early. Here’s What To Do Next.]( [The Santa Claus Rally Came Early. Here’s What To Do Next.]( Stocks surged in November, coming off low valuations as the market priced in the end of interest-rate hikes. David Sekera Chart of the Week [Why We Expect the Job Market’s Slowdown to Renew in 2024]( [Why We Expect the Job Market’s Slowdown to Renew in 2024]( Our latest economic forecast for job growth, wage growth, and labor force participation. Preston Caldwell [Read More]( Share: [facebook]( [twitter]( [linkedin]( Recent Earnings [Lululemon: Strong Momentum Leading Into a Competitive Holiday Period]( We expect to raise our fair value estimate of Lululemon stock. David Swartz [Broadcom: Higher AI Forecast and Rapid VMware Integration Are Encouraging]( Raising our fair value estimate for Broadcom stock. William Kerwin [MongoDB: Stellar Results Thanks to Enterprise Strength]( Raising our fair value estimate of MongoDB stock. Julie Bhusal Sharma [Nio: Results In Line, With Decent Vehicle Margin Recovery]( Reducing our fair value estimate of Nio’s stock on lower vehicle selling prices and rising operating expense assumptions. Vincent Sun Future-Proof Your Strategy With Morningstar Investor Build a portfolio that's durable, no matter what the market throws your way. Subscribe to Morningstar Investor and get unlimited access to our powerful ratings and performance data, unbiased analysis on thousands of stocks, funds, and ETFs, and portfolio management tools that give you a deep understanding of your investments so you know when to make changes to keep your strategy strong. [Start your free trial today](. Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2023 Morningstar, Inc. All Rights Reserved. 22 W. 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