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Suburban moms, crypto bros, and Swifties aren’t the only voters making their presence felt this election season. Bond investors are voting with their dollars in financial markets, and they don’t like what they see.

The term “bond vigilantes” was famous coined by Wall Street veteran Ed Yardeni in the 1980s, referring to traders who protested massive deficits by selling off bonds to push yields higher.

In a note published Wednesday, Yardeni, who is president of Yardeni Research, and Eric Wallerstein, the firm’s chief markets strategist, wrote that the vigilantes are voting early and pointed to the 10-year Treasury yield soaring by 63 basis points to 4.25% since the Federal Reserve announced a half-point rate cut at its meeting last month.

“In exit polls, the Bond Vigilantes are saying they are voting against Fed Chair Jerome Powell’s dovish monetary policy because the economy is running hot, and the Fed’s premature 50bps rate cut on September 18 raises the risk that it will overheat,” they said.

Treasury yields tumbled ahead of the first rate cut as investors looked for an aggressive easing cycle to match the aggressive tightening cycle. Since the Fed meeting, however, they’ve staged a big reversal.

Sentiment has turned so much that some Wall Street forecasters have warned that the central bank may even pause on further cuts. That’s as Fed officials and economic data have dampened optimism for lots of easing.

In their note, Yardeni and Wallerstein also attributed recent market moves to the outlook for federal deficits, which have ballooned recently and hit $950 billion in the fiscal year that ended Sept. 30, up 35% from the prior year due mostly to higher rates.

“The Bond Vigilantes may also be voting against Washington, figuring that no matter which party wins the White House and the Congress, fiscal policies will bloat the already bloated federal government budget deficit and heat up inflation,” they explained. “The next administration will face net interest outlays of over $1 trillion on the ballooning federal debt.”

Budget watchdogs have warned on the exploding federal deficit. While it will expand under either Donald Trump or Kamala Harris, the Penn Wharton Budget Model and the Committee for a Responsible Federal Budget have said Trump’s policies would produce a much deeper hole.

That’s as the former president has teased a range of tax cuts and even eliminating income taxes altogether. Meanwhile, his vow to hike tariffs across the board is also widely seen as inflationary because companies typically pass along the added costs to consumers in the form of higher prices.

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Ken Griffin is a billionaire hedge fund manager and serves as CEO to Citadel Advisors. According to Citadel’s most recent 13F filing, the firm bought 18,736,591 shares of Kenvue (NYSE: KVUE) stock during the second quarter — increasing its position by 5,848%.

Below, I’m going to break down why now could be a lucrative time to scoop up shares of Kenvue. More importantly, I’ll assess the company’s full picture and make the case for why this consumer health business could be a great long-term buy for the right investor.

Although you may not be familiar with Kenvue by name, I suspect you’re well aware of the company’s leading health brands. Kenvue is the business behind brands such as Aveeno, Listerine, Zyrtec, Tylenol, Motrin, Benadryl, Neosporin, Neutrogena, Nicorette, Band-Aid, and so much more.

As flu season nears, Kenvue may witness some seasonal high demand levels for its over-the-counter allergy and cold treatments.

Kenvue is a spin-off from Johnson & Johnson and has only been trading as a stand-alone entity for a little more than a year. Despite its limited trading activity, I think the table below outlining Citadel’s position in Kenvue over the last year could help shed light on a couple of important themes.

Data source: Hedge Follow.

According to public filings, Citadel bought 6.6 million shares of Kenvue around the time of its initial public offering. But until the second quarter of this year, Griffin and his team had been net sellers of Kenvue stock.

What could possibly inspire such a massive purchase after several consecutive periods of selling?

For starters, Kenvue stock is down roughly 15% since going public and currently trades at a forward price-to-earnings (P/E) multiple below that of the S&P 500. It’s possible that Citadel views Kenvue as a mispriced opportunity and thinks the market is overlooking a potential run-up in the stock following flu season. With that in mind, I would not be surprised if Citadel sees Kenvue as more of a trade and not a position with long-term conviction.

But to be fair, Citadel also bought shares in several other consumer staples or healthcare-adjacent opportunities during the second quarter. For example, the fund increased positions in Pfizer, UnitedHealth Group, Clorox, and Humana.

It’s entirely possible that Citadel bought Kenvue as a hedge against other opportunities in its diverse portfolio.

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In the immortal words of the late, great entertainer Prince, forever “is a mighty long time.” For investors, though 15 to 20 years can practically feel like forever. It can be hard to find stocks you’ll feel comfortable holding onto for that long.

However, three Motley Fool contributors think they’ve identified excellent dividend growth stocks you can buy and hold forever (or at least, the investing version of forever): Abbott Laboratories (NYSE: ABT), AbbVie (NYSE: ABBV), and Johnson & Johnson (NYSE: JNJ).

David Jagielski (Abbott Laboratories): When you’re looking for good dividend growth stocks to hold for years or even decades, start by looking for businesses with diverse revenue streams and excellent track records of increasing their payouts. Healthcare giant Abbott Laboratories checks off both of those boxes for investors.

At the current share price, its dividend yields just 1.8%, which may look unimpressive at first. However, the company has increased its payouts for 52 consecutive years, making it a Dividend King. Moreover, Abbott has been paying dividends steadily for a century, with its first payment taking place back in 1924. Along the way, the company has delivered dividends to its shareholders despite wars, inflation, economic downturns, and a lot of other turbulence.

Over the past decade, Abbott has increased its quarterly payout by 150%, from $0.22 in 2014 to $0.55 today. The only reason the healthcare stock’s yield isn’t higher now is because its valuation rose by more than 180% over that same period. When including dividend reinvestment, the total return investors would have achieved from owning shares of Abbott for the past 10 years is around 250%.

Abbott has a slow-and-steady growing healthcare business, and has many opportunities it can pursue. Its growth rate isn’t massive, but it is sustainable. And with multiple segments, including pharmaceuticals, diagnostics, medical devices, and nutrition, its operations look solid. Excluding the impact of its COVID-19 testing business, the company is projecting organic sales growth of around 10% this year.

For long-term dividend investors, this could be an ideal stock to buy and forget about.

Keith Speights (AbbVie): If you like Abbott, you might love AbbVie. The big drugmaker spun off from Abbott in 2013. Since then, it has increased its dividend by a whopping 288%. Thanks to the time it was part of Abbott, AbbVie also qualifies as a Dividend King. At the current share price, its forward dividend yield is 3.3%.

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The stock market party is over, Goldman Sachs says

The era of double-digit growth in the stock market may be coming to an end.

Goldman Sachs (GS) strategists led by David Kostin estimate that the S&P 500 index will deliver an annualized return of 3% over the next decade — well below the 13% returns in the last 10 years and the long-term average of 11%.

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The Dow drops 250 points as McDonald’s stock slumps with Tesla earnings up next

The Dow Jones Industrial Average and other major indexes opened lower on Wednesday as the yield on the benchmark 10-year U.S. Treasury note continued its upward climb, reaching 4.23%—a level not seen since July. However, there was some relief for investors as oil prices eased, with West Texas Intermediate (WTI) futures trading around $70.65 per barrel.

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Crypto is getting hammered today and Bitcoin has dropped to $65,000

The cryptocurrency market is experiencing a downturn, closely mirroring the decline in the stock market. On Wednesday, Bitcoin saw a significant drop of over 2.5% in the past 24 hours, with its price hovering around $65,000. This decline has dashed hopes of breaking the $70,000 threshold, which had gained traction just a week prior. The downward trajectory underscores the growing volatility in the crypto market and highlights the interconnectedness between cryptocurrencies and traditional financial markets.

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The Dow drops 200 points but the Nasdaq pops after Tesla’s blockbuster earnings

It was a mixed day for investors, as the Dow dropped over 200 points and the Nasdaq jumped after Tesla’s better-than-expected earnings report. In the afternoon, the Dow dropped 203 points, or 0.4%, to 42,311. Meanwhile, the Nasdaq and S&P 500 popped up 0.6% and 0.1%, respectively.

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The SEC greenlit Bitcoin ETF options trading. Here come the big fish

The Securities and Exchange Commission (SEC) has granted approval for the NYSE American LLC and CBOE to list options on spot Bitcoin exchange-traded funds (ETFs), marking a significant development in cryptocurrency history. This approval paves the way for institutional investors, or “big fish,” to gain greater access to Bitcoin through more traditional financial products.

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The Dow closes 400 points lower, marking its worst performance in more than a month

The Dow Jones Industrial Average and other major indexes suffered a steep decline on Wednesday as the yield on the benchmark 10-year U.S. Treasury note continued its upward climb, reaching 4.23%—a level not seen since July.

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Dogecoin, ApeCoin, Solana, and more: Cryptocurrencies to watch

The crypto market is currently bullish, with growing anticipation around when bitcoin will surpass the $70,000 mark. And coming tech earnings reports could further boost the overall market sentiment.

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Betting on Bitcoin? Microsoft’s shareholders will decide soon

Microsoft (MSFT) will soon determine whether to invest in Bitcoin, although the board has recommended voting against the proposal, citing that the company already considers a wide range of investable assets, including Bitcoin.

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Expect the stock market ‘fear index’ to spike heading into the election, strategist says

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A contested election could cause volatility in the stock market. Peter Repetto, investment strategist at iCapital, breaks down what investors can expect

GM earnings could be a great sign for Tesla and the Magnificent 7, strategist says

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Peter Repetto, investment strategist at iCapital, breaks down what GM’s big earnings beat means

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Enbridge (NYSE: ENB) is the kind of company that a dividend investor can buy and comfortably own for years. The attractive 6.5% dividend yield could set you up for life with a reliable and substantial passive income stream to pay for everyday living expenses. Or you could compound that dividend via dividend reinvestment and grow your position until you want to turn on the income stream.

But the dividend isn’t the only reason why you should like Enbridge.

In North America, Enbridge is one of the largest players in the midstream segment of the energy sector. This business is a toll taker, with the company largely charging fees for the use of its vital infrastructure assets, like pipelines, storage, and transportation facilities. Since the top and bottom lines are driven by fees, the price of oil and natural gas aren’t all that important to the company’s business. The volume that passes through its infrastructure system is what really matters. And energy demand, which helps drive volume, tends to be robust even when energy prices are low.

This core business is what has long backed Enbridge’s dividend. A dividend that has been increased, in Canadian dollars, each and every year for 29 consecutive years. Simply put, if you are looking at Enbridge, you need to make sure you have a good understanding of its pipeline operations. But there’s a twist here that you also have to know about.

Oil pipelines account for roughly 50% of earnings before interest, taxes, depreciation, and amortization (EBITDA). Natural gas pipelines make up another 25%. That brings the total EBITDA from the midstream business up to 75%. Clearly, this is the most important aspect of Enbridge, but there’s another 25% of EBITDA to consider, and it might be even more important than the pipelines, at least when you think about the distant future.

About a year ago, the percentages noted above were different. Oil pipelines comprised roughly 57% of EBITDA with natural gas pipes ringing in at 28%. The change came from the company’s acquisition of three regulated natural gas utilities from Dominion Energy. This pushed the company’s regulated natural gas business up to 22% of EBITDA from 12% (and reduced its exposure to the midstream sector).

Regulated utilities provide consistent cash flows, just like pipelines. So, this move supports Enbridge’s ability to keep paying and growing its dividend. But the really important part of the story is that it fits well with the company’s long-term goal of changing with the world around it. That change is the shift toward cleaner energy options. Natural gas is expected to be a transition fuel, displacing coal and oil as the world moves toward renewable power.

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The S&P 500 (SNPINDEX: ^GSPC) is the most widely followed index in the U.S., representing the 500 largest companies in the country. Given the breadth of companies that make up the benchmark, many consider it the most dependable measure of total stock market performance. To qualify for membership in the S&P 500, a company must meet the following prerequisites:

• Be based in the U.S.

• Have a market cap of at least $8.2 billion

• A minimum of 50% of its outstanding shares must be available for trading

• Must be profitable on a GAAP basis in its most recent quarter

• In aggregate, must be profitable over the preceding four quarters

Super Micro Computer (NASDAQ: SMCI), also known as Supermicro, is one of the most recent entrants to the S&P 500. It made the cut in March, and is one of only 11 companies added to the fold so far this year. To the delight of shareholders, the artificial intelligence (AI)-centric server maker recently completed a 10-for-1 forward stock split. The move was preceded by revenue that jumped 955% and net income that surged 1,030%. This has fueled an impressive rise in its share price, which soared 1,780%, as the rapid adoption of generative AI fueled accelerating sales and boosted its profits.

Despite these impressive gains, many on Wall Street believe there’s more upside ahead. Let’s look at Supermicro’s competitive advantages, the challenges it’s facing, and whether or not it’s a buy.

Supermicro has a track record of creating custom servers going back 30 years, so when the need for solutions geared toward the unique demands of generative AI exploded on the scene, the company was there to answer the call. The secret to Supermicro’s success is its modular building-clock architecture. By manufacturing these components separately, the company can offer a wide variety of servers and storage systems customized to meet each customer’s specific needs, from build-to-suit to plug-and-play rack-scale systems. Supermicro also offers support to help customers “install, upgrade, and maintain their computing infrastructure.”

Another advantage is the company’s strong relationships with the industry’s most sought-after chipmakers. This ensures that Supermicro has access to a steady supply of the most cutting-edge semiconductors to power its systems. Furthermore, energy efficiency has captured the spotlight, the result of power-hungry AI solutions. Supermicro’s long history of focusing on energy efficiency quickly attracted the industry’s attention.

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