Recently, I have been reviewing how the stock market has evolved during 2025, and the truth is it has been a very different year from 2024. While last year was marked by record highs, this year has brought volatility that many did not expect, mainly due to tariffs implemented by the U.S. administration. The impacts were immediate: indices in the red globally, but interestingly, gold shot above $3,300 per ounce. People were seeking refuge. However, after that initial correction in March-April, the markets recovered quite a bit. Right now, they are again hitting all-time highs, although trade uncertainty remains.

In this context, I have been analyzing what might be the best stocks to invest in considering this very particular scenario. What became clear to me is that diversification is necessary: different sectors, various geographies, all to reduce risk. I have seen interesting movements in several companies.

Novo Nordisk is a fascinating case. The Danish pharmaceutical company fell 27% in March, the worst drop since 2002, but why? Growing competition in diabetes and obesity, and a new drug that did not meet expectations. But here’s the important part: global demand for these treatments continues to grow. They completed an acquisition of Catalent for $16.5 billion to expand production, and in March, they signed an agreement with Lexicon for $1 billion to license a new drug. Margins are at 43%, and they have a solid pipeline. That drop could have been an opportunity.

LVMH also had a turbulent year. It fell in January, dropped again in April with modest first-quarter results, and the 20% U.S. tariffs on EU products didn’t help. But look at the full picture: revenue of €84.7 billion in 2024, operating margin of 23.1%. The correction was disproportionate considering the company's strength. Additionally, they are seeing real opportunities in Japan, the Middle East, and India. It’s the kind of company that recovers.

ASML is another that has been under pressure. It lost 30% of its value over the past year due to concerns about reduced capex spending from clients like Intel and Samsung, emerging Chinese competition, and new export restrictions from the Netherlands. But here’s what matters: they project sales between €30 billion and €35 billion for 2025, gross margin between 51% and 53%, and demand for AI chips isn’t going away. This kind of correction creates opportunities in a fundamental sector.

Microsoft experienced a 20% correction from its highs, reaching lows of $367 in March, mainly due to valuation doubts and the relative slowdown of Azure. But in April, they reported solid third-quarter results: revenue of $70.1 billion, operating margin of 46%, and Azure grew 33%. They are investing aggressively in AI and cloud. Corrections here tend to be temporary.

Alibaba is interesting because it accumulated a 35% retracement from its 2024 highs, affected by concerns over massive investments in AI and cloud, plus trade tensions. But in the March 2025 quarter, revenue was ¥236.45 billion, and adjusted net profit grew 22%, driven by cloud intelligence which increased 18%. The company announced a ¥52 billion plan for AI infrastructure. It’s the kind of company that invests for the future even in uncertain times.

Overall, when I think about the best stocks to invest in this context, I see that the key is to look for companies with solid fundamentals that have suffered corrections due to short-term reasons or macro uncertainty. JPMorgan Chase, ExxonMobil, BHP, TSMC, Toyota, Tesla, NVIDIA, Apple, Amazon, Alphabet: all have different stories but all are leaders in their fields.

The most sensible strategy seems to be diversifying across sectors: energy, finance, pharmaceuticals, luxury, technology, semiconductors. This way, you reduce regional and sector risk. I also consider it important to keep some assets as safe havens, like bonds or gold, to offset volatility. And most importantly: don’t panic. After big drops, recoveries often follow, and panicking and selling is the fastest way to lose money.

2025 will be remembered as the year when the record profitability of previous years slowed down and gave way to real uncertainty. But it is precisely in these moments that the best stocks to invest in appear if you know where to look. The key is to stay informed about the political, economic situation, and ongoing conflicts. Being prepared means being informed.