We recently published an insightful analysis titled "Starter Stock Portfolio: 12 Safe Stocks to Buy," where we highlighted various investment options for beginners. In this article, we will take a closer look at Visa Inc. (NYSE:V) and evaluate how it stands against other top beginner stocks in the current volatile market landscape.

The US stock market has encountered significant turbulence during the first quarter of 2025, a period characterized by heightened volatility and disappointing returns across major indices. Concerns surrounding tariffs, fluctuating economic data, and the performance of pivotal technology stocks have all contributed to this challenging environment for investors.

The year commenced with the unveiling of DeepSeek, an advanced Artificial Intelligence (AI) software originating from China, which posed a formidable challenge to its American counterparts such as ChatGPT. This groundbreaking software was deemed revolutionary, sending ripples through global financial markets. According to Reuters, investors reacted swiftly, resulting in a widespread sell-off across US indices, with one major tech company alone suffering a staggering loss of $593 million in a single trading day.

In response to these developments, the US government acted promptly to implement policies aimed at bolstering US-listed tech firms, while simultaneously trying to mitigate the impact of DeepSeek on the American market through the enforcement of tariffs on trade with Chinese firms.

The pervasive uncertainty surrounding the US economy further exacerbated market volatility after the Federal Reserve made the crucial announcement to maintain interest rates within the range of 4.25% to 4.50% in the short term. Although the banking sector is generally perceived as a favorable investment during periods of elevated interest rates, it is not entirely insulated from economic pressures. Analysts who initially anticipated 2025 to be characterized by low-interest rates are now recalibrating their forecasts to account for the potential emergence of non-performing loans (NPLs) attributed to sustained Federal Reserve rates.

In March, former President Donald Trump took decisive action by announcing additional global tariffs targeting Europe and China, which only intensified investor apprehensions. As expected, Europe retaliated with counter tariffs that further complicated the trade landscape. Emily Bowersock Hill, CEO and founding partner at Bowersock Capital Partners—an investment firm managing assets valued at $850 million—expressed her concerns regarding the tariff calculations employed by the US, stating in an email, “So simplistic, and frankly primitive as to leave the market wondering, did its architects ever take Econ 101?”

The US government imposed tariffs of 54% on a range of Chinese goods, set to take effect on April 9, 2025. In a reciprocal move, China announced tariffs of 34% on US goods, as reported by the state-run Xinhua News Agency. This series of escalations led to the US market indices experiencing their most significant decline since the onset of the COVID-19 pandemic, as investors grew increasingly concerned about the ramifications of these tariffs on global supply chains.

As it stands, the US economy appears to be entering a phase of "continuous stagflation," a term that describes a situation of persistent inflation combined with sluggish growth and elevated unemployment rates. The Cboe Volatility Index (commonly known as the VIX) currently registers at 29.68%, which is significantly above its one-year average of 17.6%. In light of these economic conditions, investors are advised to focus on stocks that promise steady or growing revenue, consistent dividend growth, low cyclicality, and strong cash flows, all while maintaining a durable competitive advantage. Consequently, sectors deemed systemically important—such as energy, real estate, healthcare, finance, and technology—emerge as attractive investment options for those navigating this challenging market.