Summary

• Volatility has historically increased ahead of midterm elections, especially with other market pressures, such as geopolitical tensions, weighing on investor sentiment. We saw a similar macro backdrop in 2022.
• By pairing well-positioned growth companies with income-generating, rate-sensitive assets, investors can build a portfolio that can withstand volatile markets amid midterm elections and geopolitical tensions.
• To do this, a barbell approach, which provides a balanced portfolio built for managing both opportunity and uncertainty, has historically worked well.
• I am Steven Cress, Head of Quantitative Strategies at Seeking Alpha. I manage the quant ratings and factor grades on stocks and ETFs in Seeking Alpha Premium. I also lead Alpha Picks, which selects the two most attractive stocks to buy each month, and also determines when to sell them.

Best Stocks for Volatility: A Barbell Approach

With U.S. midterm elections now just six months away, markets are entering a period where policy uncertainty combines with seasonal volatility and lingering geopolitical uncertainty. While investors cheer all-time highs and can expect pockets of growth

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of CRDO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given that any particular security, portfolio, transaction or investment strategy is suitable for any specific person. The author is not advising you personally concerning the nature, potential, value or suitability of any particular security or other matter. You alone are solely responsible for determining whether any investment, security or strategy, or any product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. Steven Cress is the Head of Quantitative Strategy at Seeking Alpha. Any views or opinions expressed herein may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank.