Easier said than done, there is one big clue in the S&P 500 index. After falling into a brief bear market during a 20% decline from highs in April 2025, stocks have achieved a record recovery in less than a quarter since the bearish sell-off, an achievement that is almost unprecedented and should be taken as initial evidence of a risk-on environment. Still, the question is which industries and stocks are the ones best prepared to deliver outsized returns.
As most investors have seen through headlines or price action, the technology sector led the recovery higher in the S&P 500, though not all names in the space are created equal. When it comes to risk-on, there is nothing as raw as cryptocurrencies and Bitcoin, which is why analysts have determined that Coinbase Global Inc. (NASDAQ: COIN) is likely to be the winner in this race.
