World stocks are businesses with a varied revenue base and do not depend entirely on one particular region or country. Their advantage is the ability to alleviate the risk of idiosyncratic, derived from a particular country. Imagine a theoretical scenario where the US enters an economic recession that erodes consumer purchasing power, slowing industrial activity and manufacturing. The growth of revenue and company earnings in the US will tank immediately, while global stock will be able to compensate for the decline in US business with growth in emerging markets or other advanced markets. So it becomes clear that world stocks are particularly attractive in times of higher uncertainties when investors try to fly to safer assets.
The 2025 calendar is perfectly combined with the description of a market that would favor world stocks. The situation becomes even more attractive as many of the safer world stocks are over -told because of the recent tariff turmoil, making them potentially more attractive in terms of pricing. At the same time, Yardeni research data showed that the net earnings review index had only been in mild negative territory in the last 2 quarters. What this means is that leading analysts have not completely bought the possibility that the US stock market will go into recession in 2025. Let's dive deeper into economic indicators and see if analysts are wrong, and the US market is indeed on the threshold of a recession, which would favor world stocks if compared to the rest of the market.
First, we want to touch briefly on the Tariff Council and emphasize that their danger is real and is likely to have a significant negative impact on GDP growth and private spending. Our thesis is reinforced by a respected Bank JP Morgan – Here is a quote from their recent publication:
“Facts continue to change – there is a sign that the” detox phase “may be over and the latest messages from Trump's administration seem to be moving from tariffs to tax and deregulation cuts. However, the damage to the business cycle is still unclear.
While tariff rates are expected to reduce current extreme levels, they are unlikely to be fully removed (China has been significantly benefiting from cross -proceeding replacement). These are encouraging developments, but clarity and closure still need to confirm a more positive forecast and avoid further harm to the business cycle. “
Secondly, recent batches of economic indicators are very disappointing. After negative data from the Philadelphia th, Dallas Fed's more recent data shows that general business activity, new orders, employment and forecast are all contracting. With such a sudden decline in economic activity in large provinces, Ods is that GDP Q1 2025 data will identify the first of two required quarters of negative growth to declare a recession. The slowdown economy has been indirectly confirmed by the leading executives of shipping companies, such as the CEO of American Supply Chain Management Company, he claimed in the three weeks since the tariffs came into force, that China's ocean-qualifyer orders to the US to the US are down by more than 60 percent. Some economists warn that the consequences may be empty shelves in US stores, similar to the start of the Covid pandemic, when markets firing more than 30%.
Third, the consequences of lower loads of China could be devastating to the US economy, given that hundreds of billions of goods flow through each year. The shipment sector is already feeling the results as one significant player loses a quarter of its value after reporting the decline of transport volumes during its latest earnings call. A prominent company of American capital market recently reported that AirFreight volumes from China have also come to an end, as higher value -added products see less import. And the list goes on and on – countless industries are likely to be affected by a shortage of key supplies, or input prices that are too expensive to maintain production.
We do not intend to make apocalyptic predictions for the US economy, and especially for the stock market. History shows that no matter how deep a recession, prices always improve quite quickly and reach new highlights. The key takeaway for readers is that many indirect economic indicators and signals suggest that the US economy is in trouble, and the forecasts are uncertain. In this case, a smart move would be to diversify some of the US exposure by investing in world stocks that have the potential to better hold their value during a possible Bear market.
Minerals Technologies Inc. (MTX): Among the over -sell -selling world stocks to be purchased by hedge funds
Coal miner surrounded by piles of bentonite and leonardite in a coal mine.
To draw up our list of over -sold world stocks, we used a screener to identify stocks with a relative strength index (RSI) under 40. We then manually identify the companies that drive at least 40% of their revenue from outside the US. Finally, we compared the list with the Insider Monkey proprietary database of hedge fund ownership as a fourth quarter 2024 and included in the article of the top 11 stocks with the largest number of hedge funds owned by the stock, listed in an ascending order.
Why are we interested in the stocks to which money accumulates? The reason is simple: our research has shown that we can outperform the market by imitating the main stock options of the best hedge funds. Our quarterly newsletter strategy selects 14 small cap stocks and a large cap every quarter and has returned 373.4% since May 2014, beating its 218 percentage point benchmark (See more details here).
RSI: 29.28
Number of Hedgerow Fund Holders: 24
Minerals Technologies Inc. (NYSE: MTX) Develops, manufactures, and markets a wide range of mineral -based products, systems and services. Its consumer segment and specialties provide mineral-to-market and functional additive solutions for consumer and industrial goods, while the engineering solutions segment offers advanced foundry technologies, steelmaking, environmental and infrastructure applications. The company is a world leader who has a presence in more than 30 countries.
Minerals Technologies Inc. (NYSE: MTX) facing a challenging first quarter in 2025, with a sales of $ 492 million, down 8% YOY, mainly due to lower volumes and unfavorable mix. The company experienced a slow start in January, with customer order volume reductions and extended idle time at several customer facilities. However, order patterns moved in March, with an increase in volumes across most of the company, leading to an average daily sales rate of 10% higher compared to January. Despite these challenges, MTX is one of the over-sale stocks to invest in as the company remains confident in its long-term growth targets and its strategy, focusing on further penetration to core markets, the sales growth of consumer-focused products, and driving higher levels of innovation and new product development.
In order to tackle the current uncertainty of the market, Minerals Technologies Inc. (NYSE: MTX) initiated a cost saving program targeting $ 10 million in annual savings by the beginning of 2026. The company also recorded a provision of $ 215 million for an estimated claims related costs and a talc -related litigation. Looking ahead, the company expects a stronger Q2 that sales are predicted to increase by 5% to 10% in a row and operating income to improve around 20%. Managers believe MTX remains well placed with its global footprint, value-added products portfolio, and a deep innovation pipeline to continue to produce profitable long-term growth despite current market uncertainty.
On the whole, mtx is a 9th position On our list of over -selling world stocks for purchase by hedge funds. While we recognize the potential of MTX as an investment, our conviction lies in the belief that AI stocks are more promising for achieving higher gains and doing so within a shorter time frame. There has been AI stock that has risen since the beginning of 2025, while popular AI stocks lose about 25%. If you are looking for AI stock more promising than MTX but trading at less than 5 times its earnings, check out our report for this Cheapest AI Stock.
