This Market Is The Buying Opportunity Of A Lifetime

As May opens for business, shell-shocked stock market investors are waving goodbye to April with both hands. While the major stock indexes have bounced back moderately over the last week, stocks fell 11% at one point and declined 20% since mid-February, primarily due to tariff troubles affecting the global economy.

That's not all. Consumer spending was at a two-year low in the first quarter of 2025, while first-quarter US gross domestic product fell by 0.3%, fueling talk of a recession on the horizon.

Older traders are talking about a “Templeton Moment” right now, and likely with good reason. The term stems from legendary trader John Templeton, who famously borrowed $10,000 to buy shares in every company trading on the New York Stock Exchange for under $1 during a market trough in 1939, during the Great Depression. The list included 104 companies, including 34 that were bankrupt. A few years later, Templeton banked huge gains on all but four stocks when he sold.

Today’s market could be your opportunity for something similar.

"It doesn’t resemble a ‘Templeton Moment,’ but I would be cautious," said Eugenia Mykuliak, founder and executive director at B2PRIME Group, a global financial services provider for institutional investors. "Today’s market has more nuances, and we're not close to an ‘extreme’ pessimism, unlike the 1930s. Even though there are some well-valued stocks out there, that's certainly not an invitation to buy in bulk."

Unlike the 1930's, which saw economic indicators drag across the board, this market has largely fallen victim to one malady.

“Uncertainty has been generated by the announcement, delay, magnitude, and duration of tariffs," said Karl Farmer, portfolio manager at Rockland Trust Bank. "With over 40% of the S&P 500's revenues coming from outside the US, the tariffs can have some big impacts on inventory management and purchase plans as producers and consumers face higher prices."

Resulting market uncertainty means less confidence in profit consistency and usually lower multiples that investors place on earnings.

"Higher costs likely lead to lower profits if sellers cannot pass on the price increases to their customers, or at a minimum, it leads to lower consumption," Farmer said. "A lower multiple coupled with lower profits means lower market levels. The longer the tariffs remain, the more likely there will be behavior changes by both producers and consumers, as many will seek alternatives if they believe that higher prices are not temporary."

If the delayed reciprocal tariffs are implemented in full and there have been few negotiated breakthroughs, "then we have not seen the bottom," Farmer added.

Here are today’s buying opportunities and what to look out for.

Stocks To Pounce On At Lower Market Levels

Templeton or no Templeton, when the markets slide significantly, there's always low-hanging fruit available, and the US stock market is no different. Here are a few names that stock market gurus like in a shallower pricing market.

British American Tobacco BTI. Sluggish stock markets spell opportunity for stocks that demonstrate good resilience amid uncertainty, especially those that turn to future-oriented technologies, Mykuliak said.

Shopify SHOP. Mykuliak also likes stocks that offer investors a double dose of value.

"Shopify could be another good example of a perfect combination of AI and e-commerce, which are two powerful trends today," she said. "If merchants want to adapt to new retail realities, it’s a top choice for them."

Nike NKE. According to Farmer, defensive sectors such as consumer staples and utilities have held up very well this year. "Presently, we favor some names in other areas that may have been overly punished, but could provide above-average returns for the patient investor," he said.

Nike tops that list. Nike is no quick fix for a 2025 portfolio, but it makes sense in this market.

"A pop could be had here if tariffs end quickly," Farmer said. "Nike did have issues even before tariffs, but it's a reinvigorating brand, and it's repairing relationships. Plus, Nike shares are down 70% from peak to 2017 levels, which provides a decent entry point."

Air Products and Chemicals APD. Air Products is a market leader in industrial gas trading at a big discount to competitor Linde LIN. "Future growth is coming from new projects and clean energy transition," Farmer said. "Additionally, the company has a strong and predictable recurring revenue model with on-site plants and 20-year contracts."

Thermo Fisher Scientific TMO is a market leader in life sciences, diagnostics and instruments.

"The stock is off 30% in the last three months on fears of spending cutbacks from customers who rely on federal funding for research," Farmer notes. "It's trading at less than market multiples for better earnings growth. Meanwhile, clarity on federal funding should mark a bottom."

More Than A "Buy the Dip" Scenario

As uncertainty prevails in the stock market, money managers are taking a more defensive stance with their portfolios, with one eye on historical trends.

"Historically, when volatility spikes—as it did in early April—the equity markets tend to see large gains one year later," said Andrew Constantinides, a financial advisor at Neil Jesani Wealth Management. "In the short term, however, calling the bottom is much harder. Investors should always remember: There can always be more downside in the market—unless it's at zero."

Constantinides said his firm is primarily focused on value and international stocks.

"Both categories have underperformed U.S. growth stocks over the past 10 years," he noted. "But Q1 of 2025 showed the first real signs of a cycle shift back toward value and international leadership. We favor developed markets, such as Europe and Asia. Our current sector focus is energy and financials—companies with low price-to-earnings ratios and high earnings yield. We have almost no exposure to large-cap tech."

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