In our recent publication, we highlighted a carefully curated list of 12 safe stocks for beginners to consider for a starter stock portfolio. Among these stocks, we are now turning our attention to Meta Platforms, Inc. (NASDAQ:META) and evaluating its current standing in comparison to other promising beginner stocks.

The U.S. stock market has encountered significant challenges during the first quarter of 2025, characterized by heightened volatility and disappointing returns across the major indices. A multitude of factors, including concerns over tariffs, mixed economic data, and the performance of pivotal technology stocks, have collectively contributed to this tumultuous period for investors.

A pivotal moment occurred at the onset of the year with the unveiling of DeepSeek, a groundbreaking Artificial Intelligence (AI) software developed in China. This innovative technology posed a serious challenge to its American counterparts like ChatGPT, shaking the confidence of investors and sending ripples through global markets. As reported by Reuters, this led to a widespread sell-off among global investors, notably resulting in one major tech firm's staggering loss of $593 million in just a single day.

In response to these developments, the U.S. government swiftly enacted policies designed to bolster American tech firms while mitigating the influence of DeepSeek AI. These measures included imposing tariffs on trade with Chinese companies, aimed at protecting the domestic market.

Amidst this backdrop of uncertainty surrounding the U.S. economy, the Federal Reserve's announcement to maintain interest rates between 4.25% and 4.50% for the short term only added to the prevailing market volatility. While the banking sector is often viewed as a safe haven during periods of high-interest rates, it is not entirely insulated from the prevailing economic conditions. Analysts who had initially forecasted a low-interest rate environment for 2025 are now recalibrating their expectations, factoring in the potential impact of non-performing loans (NPLs) resulting from sustained fed rates.

In March, the situation escalated when President Trump declared additional global tariffs targeting both Europe and China, further igniting investor anxiety. Europe retaliated with their own counter-tariffs, creating a brewing trade war. Emily Bowersock Hill, CEO and founding partner at Bowersock Capital Partners, which manages assets totaling $850 million, expressed her concerns regarding the U.S. tariff calculation methodology, describing it as:

“So simplistic, and frankly primitive as to leave the market wondering, did its architects ever take Econ 101?”

The U.S. government subsequently announced a remarkable 54% tariff on Chinese goods, set to take effect on April 9, 2025. Following suit, China retaliated with “reciprocal” tariffs on U.S. goods of 34%, as reported by the official Xinhua News Agency. This tit-for-tat strategy culminated in the U.S. market indexes experiencing their most significant decline since the COVID-19 pandemic, raising alarm among investors about the potential disruption to global supply chains.

Amidst these tumultuous developments, the U.S. economy appears to be heading toward a phase of “continuous stagflation,” a term that encapsulates the phenomenon of persistent inflation occurring alongside minimal economic growth and elevated unemployment rates. The Cboe Volatility Index, commonly referred to as VIX, currently stands at 29.68%, significantly surpassing its one-year average of 17.6%. In these challenging economic conditions, investors are advised to seek out stocks that promise steady or growing revenue, consistent dividend growth, low cyclicality, and robust cash flows, as well as those with a sustainable competitive advantage. Sectors deemed systemically important—such as energy, real estate, healthcare, finance, and technology—are emerging as attractive options for investors during these uncertain times.