In April, nearly 52.6 million retired workers brought home an average Social Security check totaling $1,999.97. While a $2,000 monthly check might not sound like a lot of money, no social program has consistently played a more vital role in pulling seniors above the federal poverty line and helping them make ends meet than Social Security.

There's just one problem: This nearly 90-year-old program's financial foundation is crumbling.

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Current and future retirees are counting on their elected officials -- including President Donald Trump -- to strengthen Social Security and avoid the prospect of sweeping benefit cuts, which are drawing closer. However, not every proposal to improve Social Security will yield a desired result.

Social Security benefit cuts are estimated to be eight years away

In January 1940, the very first retired-worker benefit check was paid from Social Security's coffers. Every year since this first payment was doled out, the Social Security Board of Trustees has published an annual report that details in length how the program generates income and where those dollars end up.

More importantly, these annual Trustees Reports analyze fiscal and monetary policy shifts, along with ongoing demographic changes, to make educated projections about the financial health of Social Security when looking 75 years into the future (what the Trustees refer to as the "long term").

Beginning in 1985, every Trustees Report has warned of a long-term unfunded obligation. In simpler terms, the Trustees projected what Social Security would collect in income in the 75 years following the release of a report and estimated that outlays (benefits + administrative expenses to operate the Social Security program) would outpace income.

In the 2024 Trustees Report, this long-term funding deficit had ballooned to $23.2 trillion. While online myths often blame government theft or undocumented migrants for Social Security's woes, it's significant demographic shifts -- rising income inequality, lower birth rates, and a meaningful decline in net legal migration in the U.S. -- that are the real culprits.

Though $23.2 trillion is an eye-popping figure, it's not the one that should have beneficiaries most concerned. Rather, the most worrisome of all projections is that the Old-Age and Survivors Insurance Trust Fund (OASI) will exhaust its asset reserves by 2033.

The OASI's asset reserves represent the excess income collected since inception that hasn't been paid out in benefits (or administrative expenses). Social Security's asset reserves are invested in special-issue, interest-bearing government bonds, as required by law.

The good news for the OASI is that it doesn't need a cent in asset reserves to keep paying benefits. More than 91% of Social Security's income is collected from the 12.4% payroll tax on earned income. Thus, there's no concern about Social Security going bankrupt or stopping benefit payments.

However, the existing payout schedule, including annual cost-of-living adjustments (COLAs), is at risk of major disruption in 2033. Without reform, the Trustees anticipate that retired workers and survivor beneficiaries will see their Social Security checks slashed by up to 21% in eight years.

The OASI's asset reserves are forecast to run out by 2033. U.S. Old-Age and Survivors Insurance Trust Fund Assets at End of Year data by YCharts.

President Trump has proposed a foundational change to Social Security

During the first 100 days of Donald Trump's nonconsecutive second term, he's overseen a flurry of Social Security changes. The most publicized one has been his creation of the Department of Government Efficiency (DOGE), which aims to make the U.S. federal government more efficient. In the wake of DOGE's creation, the Social Security Administration announced plans to reduce its staff by 7,000 to 50,000, as well as close some of its physical offices.

Attempting to make Social Security a more efficient program by trimming administrative costs is nothing new for Trump. All four of the president's annual budget proposals during his first term (Jan. 20, 2017 – Jan. 20, 2021) called for modest outlay reductions over a 10-year period.

But President Trump's sweeping Social Security proposal has nothing to do with cutting benefits. Rather, it has to do with eliminating a hated aspect of the program that results in reduced benefits.

.@POTUS: "In the coming weeks and months, we will pass the largest tax cuts in American History--and that will include No Tax on Tips, NO Tax on Social Security, and No Tax on Overtime. It's called the one big beautiful bill..." pic.twitter.com/SRwaWoY9gZ

-- Rapid Response 47 (@RapidResponse47) April 29, 2025

In a social media post to Truth Social on July 31, then-candidate Donald Trump stated, "Seniors should not pay tax on Social Security." In a recent town hall meeting, the president doubled down on his desire to end the tax on Social Security benefits.

Beginning in 1984, up to 50% of Social Security benefits could be exposed to the federal tax rate if provisional income (adjusted gross income + tax-free interest + one-half of benefits) surpassed $25,000 for a single filer and $32,000 for couples filing jointly. A decade later, a second tier was added that allows up to 85% of benefits to be taxed at the federal rate if provisional income tops $34,000 for single filers and $44,000 for couples filing jointly.

The reason the tax on Social Security benefits is so disliked is because these income thresholds haven't been adjusted for inflation since their introduction decades ago. A tax that was only expected to impact around 10% of all senior households in the mid-1980s is now applicable to around half of all senior households. Not surprisingly, an informal poll in 2023 by nonpartisan senior advocacy group The Senior Citizens League found that 94% of respondents didn't believe Social Security income should be taxed.

Eliminating this tax would increase net benefits for about half of all retired-worker beneficiaries -- but it would also have undesirable consequences for Social Security.

Trump's proposal to improve Social Security would significantly worsen its outlook

A proposal to remove the tax on Social Security benefits would have overwhelming support from retirees currently receiving benefits and likely garner plenty of support from future beneficiaries. But moving forward with such a proposal would have deleterious effects on Social Security's financial health.

In 2023, Social Security collected a little over $1.35 trillion in income. Though an aforementioned 91% came from the 12.4% payroll tax on earned income (applicable up to $176,100 in 2025), the remainder traces back to the interest income earned on the program's asset reserves, as well as the taxation of benefits.

With the OASI's asset reserves shrinking with each passing year due to demographic shifts, interest income will be a less-meaningful income source over time. Meanwhile, the importance of taxing benefits as a source of Social Security income has only grown over time.

The income generated from taxing Social Security benefits has increased significantly over four decades. U.S. Old-Age, Survivors, and Disability Insurance Trust Fund Income from Taxation of Benefits Receipts data by YCharts.

If the tax on benefits is eliminated, the 2024 Trustees Report estimates that $943.9 billion in income would be lost from 2024 through 2033. This would almost certainly speed up the timeline to the OASI's asset reserve depletion date, as well as potentially increase the percentage that benefits would need to be cut (beyond the estimated 21%) to sustain payouts through 2098 without any further reductions.

Perhaps the saving grace for Social Security's financial health is that President Trump can't amend the program through an executive order. Amending the Social Security Act requires 60 votes in the upper house of Congress. The thing is, neither Democrats nor Republicans have held a supermajority of seats (60) in the Senate since 1979, so any major overhauls to Social Security will require bipartisan support.

Although ending the tax on benefits is wildly popular with seniors, it's fiscally irresponsible and would further cripple an already struggling program. It's highly unlikely the president will find any support from Democrats in the Senate, and it's not even clear if all 53 GOP senators would support such a proposal.

Despite all the hoopla surrounding Trump's popular proposal, it has almost no chance of being enacted.

The $22,924 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.

One easy trick could pay you as much as $22,924 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.

View the "Social Security secrets" »

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Wall Street hasn't been hurting for catalysts of late. Following a nearly two-and-a-half-year climb in the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC), which was spurred by the rise of artificial intelligence (AI), investors have been hypnotized in 2025 by President Donald Trump's ever-changing tariff policies, wild swings in Treasury bond yields, and the return of stock-split euphoria.

But it's fair to question whether Wall Street and the investing community are missing the bigger picture: The U.S. economy.

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Although the economy and stock market aren't tied at the hip, corporate earnings often ebb and flow with the domestic economy. According to one recession forecasting tool, which hasn't been wrong in 59 years -- and has only been incorrect once when back-tested to 1959 -- things may not be as rosy for the U.S. economy and stock market as they appear on the surface.

It's been 59 years since this recession indicator wasn't accurate

There isn't any data point or forecasting tool on the planet that can guarantee what's going to happen next with the U.S. economy and/or Wall Street. But there are select metrics, forecasting tools, and events that have strongly correlated with directional moves in the Dow, S&P 500, and Nasdaq Composite throughout history. For instance, notable declines in M2 money supply have historically led to economic downturns and tough times for Wall Street.

Perhaps Wall Street's biggest concern at the moment has less to do with Trump's tariff policies, and everything to do with what the Federal Reserve Bank of New York's recession probability tool says comes next.

The New York Fed's recession predicting tool analyzes the spread (difference in yield) between the 10-year Treasury bond and three-month Treasury bill to calculate how likely it is that a recession will take shape over the next 12 months.

In a healthy economy, the Treasury yield curve slopes up and to the right. This is to say that longer-dated bonds maturing in 10 to 30 years sport higher yields than Treasury bills maturing in a year or less. The longer your money is tied up in an interest-bearing asset, the higher the yield should be.

When the yield curve inverts is where trouble starts brewing. This is where short-term Treasury bills have higher yields than long-term Treasury bonds. It's typically an indication that investors are worried about the outlook for the U.S. economy.

The only false positive for the New York Fed's recession probability tool occurred in 1966. U.S. Recession Probability data by YCharts. Gray areas denote U.S. recessions.

The New York Fed's recession probability forecast is updated on a monthly basis, with the May 2025 update pointing to a 30.45% chance of a U.S. recession taking shape by April 2026. While this is well off the 2023 high of a greater than 70% chance of a recession occurring -- this was the highest reading in four decades -- every probability reading above 32% since 1966 has eventually been followed by a U.S. recession.

But there's more to this correlation than simply looking at recession probability percentages. More often than not, previous recessions didn't materialize until the yield curve un-inverted and began moving sharply higher. You can see this dynamic in the 10-year and three-month Treasury spread comparison below.

10 Year-3 Month Treasury Yield Spread data by YCharts. Gray areas denote U.S. recessions.

Since we're coming off the steepest inversion of the 10-year/three-month yield curve in four decades, it's only natural that it's taken a bit longer for the yield curve to attempt to right itself. This un-inversion of the yield curve, coupled with the history behind the New York Fed's recession probability tool, strongly points to a U.S. recession taking shape.

It's worth noting that the initial read of U.S. first-quarter gross domestic product (GDP) showed a 0.3% contraction in the economy. While this is notably better than what the Federal Reserve Bank of Atlanta's GDPNow model had been forecasting, in terms of the U.S. economy shrinking, it still aligns with the New York Fed's recession indicator potentially being right.

Based on an analysis from Bank of America Global Research, around two-thirds of the S&P 500's peak-to-trough drawdowns between 1927 and March 2023 occurred during, not before, U.S. recessions.

Economic and stock market cycles aren't linear, which is actually fantastic news

Seeing a highly successful predictive indicator forecast a recession may not be what you, as an investor and/or working American, want to hear. But the pendulum for economic and stock market cycles swings in both directions -- and quite disproportionately.

Regardless of fiscal and monetary policy, recessions are normal, healthy, and inevitable aspects of the economic cycle. While higher unemployment and weaker wage growth often accompany recessions, economic downturns are perhaps best known for being short-lived.

In the nearly 80 years since World War II ended, the U.S. economy has navigated its way through a dozen official recessions. The average length of these 12 economic downturns is just 10 months, with none surpassing 18 months in length.

On the other hand, the typical period of growth for the U.S. economy is roughly five years over the same timeline. The economic boom-and-bust cycle is anything but a mirror image, and it explains why the U.S. economy has grown noticeably over the long run.

This wide disparity between optimism and pessimism can also be observed on Wall Street.

It's official. A new bull market is confirmed.

The S&P 500 is now up 20% from its 10/12/22 closing low. The prior bear market saw the index fall 25.4% over 282 days.

Read more at https://t.co/H4p1RcpfIn. pic.twitter.com/tnRz1wdonp

-- Bespoke (@bespokeinvest) June 8, 2023

In 2023, the analysts at Bespoke Investment Group published a data set to social media platform X that compared the length of every S&P 500 bull and bear market dating back to the start of the Great Depression in September 1929.

Bespoke found that the average bear market downturn in the benchmark S&P 500 lasted 286 calendar days, or approximately 9.5 months. The data set also shows that the lengthiest bear market on record was 630 calendar days during the oil embargo of the mid-1970s.

On the other hand, the average bull market has stuck around for 1,011 calendar days spanning nearly 94 years. What's more, if the current bull market for the S&P 500 were extrapolated to the present day, more than half of all bull markets since September 1929 (14 out of 27) would have lasted longer than the lengthiest bear market.

It simply doesn't make much sense for investors to become too preoccupied with short-lived downturns when historical data conclusively shows that the U.S. economy and stock market spend a disproportionate amount of their time in the proverbial sun.

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No social program is responsible for pulling more people out of poverty each year than Social Security. According to the Center on Budget and Policy Priorities, the program lifted 22 million people above the federal poverty line in 2023, including 16.3 million adults aged 65 and over.

It's also a program that retired workers lean on heavily to make ends meet. Spanning 23 years of annual surveys, pollster Gallup has found that 80% to 90% of retirees, including 88% in April 2024, require their Social Security income to cover at least some portion of their expenses.

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However, average Social Security checks can meaningfully differ by age. Let's take a closer look at how retired-worker benefits are calculated, examine how much the average retired worker is bringing home each month by age, and take a wide-lens look at which, if any, ages are likeliest to maximize lifetime Social Security benefit collection, based on a comprehensive study.

These four factors are used to calculate your monthly retired-worker benefit

Although Social Security isn't the easiest government program to understand at times, the four variables used by the Social Security Administration (SSA) to calculate your retired-worker benefit are straightforward. In no order, these are your:

• Earnings history
• Work history
• Full retirement age
• Claiming age

Your earnings and work history are two factors that are tightly linked together. When calculating your monthly retired-worker benefit, the SSA will rely on your 35 highest-earning, inflation-adjusted years. If you've received an above-average salary or wage throughout your lifetime (investment income doesn't count), there's a reasonably good chance you'll net an above-average Social Security retired-worker check, as well.

But there's a catch to this calculation. In the event that you don't work at least 35 years, the SSA will average in a $0 for every year short of 35. Regardless of how much you've earned in the years that do qualify, you'll have no chance to maximize your monthly benefit without 35 years of work and earnings history.

The third item -- full retirement age -- is based solely on your birth year. It represents the age you become eligible to collect 100% of your retired-worker benefit. For anyone born in or after 1960, the full retirement age is 67.

The fourth and final factor, and the one that packs the biggest punch in terms of swinging the Social Security payout pendulum, is your claiming age. Though retired-worker benefit collection can begin as early as age 62, the SSA dangles a monetary carrot of sorts to incent patience. For every year a worker waits to collect their benefit, beginning at age 62 and continuing until age 70, their monthly payout can increase by as much as 8%.

Here's a breakdown of the average Social Security retirement benefit by age

With a clearer understanding of the variables that impact Social Security benefits, it's time to dive into the variances between average retired-worker benefits by age.

Every year, the SSA's Office of the Actuary updates a table displaying average monthly retired-worker benefits from ages 62 through 99-plus. The table you're about to see is based on average monthly checks doled out in December 2024.

The one thing to keep in mind as you peruse this data is that it's based on the age of the recipient in December 2024 and isn't necessarily indicative of their claiming age (with the exception of age 62). For instance, a retired-worker beneficiary who's 66 may have initially collected their payout anywhere from 62 to 66.

Age	Average Retirement Benefit	Age	Average Retirement Benefit
62	$1,341.61	81	$2,004.45
63	$1,364.48	82	$2,007.04
64	$1,425.42	83	$2,006.39
65	$1,611.00	84	$1,983.59
66	$1,763.99	85	$1,944.05
67	$1,929.73	86	$1,924.82
68	$1,979.87	87	$1,893.13
69	$2,039.72	88	$1,838.39
70	$2,148.12	89	$1,813.00
71	$2,114.43	90	$1,809.24
72	$2,117.23	91	$1,814.93
73	$2,087.94	92	$1,838.03
74	$2,054.16	93	$1,825.54
75	$2,064.53	94	$1,815.61
76	$2,076.39	95	$1,814.95
77	$2,046.16	96	$1,821.27
78	$2,060.78	97	$1,822.09
79	$2,012.59	98	$1,798.73
80	$2,006.20	99 and over	$1,775.88

Data source: Social Security Administration Office of the Actuary, as of December 2024.

The most glaring takeaway when looking at nearly four decades' worth of average benefit checks is that claiming age really does matter. While keeping in mind that the above table is based on a recipient's age in December 2024 and isn't necessarily indicative of their claiming age, there are some huge variances at opposite ends of the traditional claiming range of 62 through 70.

On one hand, the roughly 594,200 claimants who were receiving (and claimed) a payout at age 62 brought home an average of $1,341.61 in December, or 32% less than the average retired-worker check for all ages of $1,975.34. Claiming at age 62 permanently reduces your monthly payout by up to 25% to 30%, depending on your birth year.

Meanwhile, close to 3.18 million age 70 recipients took home $2,148.12 per month in December, which is the highest average of any age, and 60% more than the earliest filers were receiving at age 62. Claiming benefits at 70 can increase your payout by 24% to 32% above what you'd have received at full retirement age.

The other interesting tidbit you'll notice is that average monthly benefit checks tend to decline and flatten out in the mid-80s and beyond. This has to do with women have a longer life expectancy than men, as well as women being more likely to act as caretakers.

A Pew Research Center survey from 2021 found that 26% of women were stay-at-home parents, compared to only 7% of men. Fewer years in the labor force adversely impacts the lifetime earning potential for women, which in turn reduces their average benefit from Social Security, as evidenced by this table.

There most certainly is a superior Social Security claiming age

Considering the above data on average retired-worker benefits, you might be wondering if being patient pays off when claiming Social Security? An extensive analysis published in 2019 from the researchers at United Income provides a pretty clear answer.

In The Retirement Solution Hiding in Plain Sight, the researchers at United Income used data from the University of Michigan's Health and Retirement Study to extrapolate the claiming decisions of 20,000 retired workers. The purpose was to see how many had optimized their claim -- i.e., chosen the claiming age that maximized their lifetime income collected from Social Security. While this report is six years old, the data it presents still holds true today.

Not surprisingly, only 4% of the 20,000 retired-worker beneficiaries optimized their payout. Without knowing when we'll die ahead of time, our claiming decision is always going to involve some educated guesswork and luck.

Furthermore, we all take a unique path in life. Thus, your mix of monetary needs, access to retirement accounts, marital status, personal health, tax implications, and so on, will be different from everyone else.

However, United Income's study did find a distinctive inversion between actual and optimal claims.

On one hand, 79% of all initial claims occurred at ages 62, 63, or 64. But when extrapolated, only 8% of optimized claims were associated with ages 62 through 64. This is to say that claiming early isn't the best decision for most retirees.

In comparison, 57% of the 20,000 retired workers studied would have maximized their lifetime payout from Social Security had they waited until age 70 to begin collecting. Age 67 was the next-closest in terms of optimization probability at around 10%.

There will absolutely be instances and circumstances where an early filing makes sense. For instance, if you have a chronic illness that can shorten your lifespan, or you're a significantly lower-earning spouse who wants to generate income for the household, an early filing may very well be your best choice.

But when examining the big picture, age 70 is a superior claiming age. Future retirees would be wise to consider waiting to collect their Social Security income.

The $22,924 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.

One easy trick could pay you as much as $22,924 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.

View the "Social Security secrets" »

The Motley Fool has a disclosure policy.

For more than a century, the stock market has been the premier wealth creator for investors. But this doesn't mean stocks move higher in a straight line.

Over the last seven trading sessions, investors have witnessed historic levels of volatility in the iconic Dow Jones Industrial Average (DJINDICES: ^DJI), benchmark S&P 500 (SNPINDEX: ^GSPC), and growth-focused Nasdaq Composite (NASDAQINDEX: ^IXIC).

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For example, the 90-day pause on higher reciprocal tariffs for most countries, which was announced by President Donald Trump on April 9, led the Dow, S&P 500, and Nasdaq to their largest single-session point increases in their respective histories. Meanwhile, the Nasdaq endured three of its five biggest single-day point declines from April 3 to April 10, with the S&P 500 navigating three of its six-largest single-session point drops during this same span.

Volatility is the price of admission investors pay for access to this proven wealth creator. Thankfully, stock market corrections, bear markets, and crashes tend to be short-lived. Putting your money to work during periods of historic volatility is usually a smart move.

But well before the stock market's bout of historic volatility, some of Wall Street's brightest money managers were purchasing safe stocks that can thrive in virtually any environment. What follows are five of the safest stocks billionaire investors have bought for their respective funds.

Philip Morris International

Lone Pine Capital's billionaire chief Stephen Mandel purchased four new stocks for his fund's portfolio during the December-ended quarter, as well as added to five existing positions. Arguably, none of these additions stands out more than the 1,987,716 shares purchased of tobacco giant Philip Morris International (NYSE: PM).

Tobacco stocks may not be 100% impervious to stock market volatility and short-term fear, but they're pretty close to it. Cigarette smokers have demonstrated a willingness to absorb substantial price hikes over time, and the addictive nature of the nicotine found in tobacco keeps most users loyal to the product.

Philip Morris also has the advantage of operating globally. With a presence in more than 180 countries, it's able to move the organic growth needle in emerging markets where tobacco is still a luxury, as well as rake in generally predictable operating cash flow in developed countries.

Lastly, Philip Morris International is benefiting from its ongoing but increasingly successful transition to a smokeless future. The introduction of Zyn nicotine pouches and its Iqos heated tobacco system have reignited sales and profit growth for the company. While Philip Morris stock is unlikely to move significantly higher during the current market tumult, its downside is, presumably, limited.

Teva Pharmaceutical Industries

Billionaire Stanley Druckenmiller of Duquesne Family Office closed out 2024 overseeing a 78-stock, $3.72 billion fund. Though turnover tends to be high in Druckenmiller's fund, he's been aggressively adding to an existing position in brand-name and generic-drug developer Teva Pharmaceutical Industries (NYSE: TEVA). Druckenmiller green-lit the purchase of 7,569,450 shares of Teva in the fourth quarter.

What's great about healthcare stocks is they're highly defensive. This is to say that people don't stop becoming ill or requiring prescription drugs just because Wall Street had a rough couple of weeks. With demand for brand-name and generic drugs constant and/or climbing, Teva's cash flow can be forecast well in advance.

Teva's recent return to sales growth is a function of the company shifting its strategy more toward novel-drug development. Whereas generic drugs offer low margins and pricing power can be weak at times, novel therapies sport juicy margins and strong pricing power. Tardive dyskinesia drug Austedo, which is Teva's top-selling brand-name therapy, may surpass $2 billion in sales this year after generating $1.23 billion in revenue in 2023.

Teva's turnaround has also featured a remarkable improvement in its financial flexibility. Following its August 2016 buyout of generic drugmaker Actavis, Teva's net debt clocked in around $35 billion. It ended last year at closer to $14.5 billion. With Teva's forward price-to-earnings (P/E) ratio now below 5, the risk-versus-reward profile strongly favors optimists.

Sirius XM Holdings

Despite Berkshire Hathaway's Warren Buffett being a persistent net seller of stocks for the last nine quarters, he's done a little bit of shopping recently. In particular, he's been scooping up shares of satellite-radio operator Sirius XM Holdings (NASDAQ: SIRI). Between Jan. 30 and Feb. 3, Berkshire's billionaire chief oversaw the purchase of 2,308,119 shares of Sirius XM.

One reason Sirius XM can be viewed as something of a safe stock amid historic market volatility is its legal monopoly status. It's the only licensed satellite-radio operator. Although it still fights for listeners with terrestrial and online radio companies, being the only licensed satellite-radio provider affords it a good degree of subscription pricing power.

Sirius XM's revenue diversification also helps it stand out from its peers. While most radio operators generate the bulk of their revenue from advertising, which is prone to significant weakness during periods of uncertainty for the U.S. economy and Wall Street, Sirius XM brought in just 20% of its net sales from ads last year. A majority of its revenue (76% of 2024 net sales) comes from self-pay subscriptions. These subscribers are less likely to cancel their service than businesses are to pare back their marketing budgets during periods of turbulence.

Sirius XM's valuation provides a solid floor, too. Valued at just 6.5 times forward-year earnings, there's reason to believe the company's downside is minimal at this point. A dividend yield north of 5% doesn't hurt, either.

Elevance Health

Billionaire Leon Cooperman closed out 2024 holding 45 securities valued at more than $2.6 billion. While there were more than a dozen stocks newly purchased and/or added to during the fourth quarter, the stand-out buy was the addition of 107,400 shares of health insurance juggernaut Elevance Health (NYSE: ELV).

Circling back to the discussion of Teva, demand for healthcare services tends to be highly predictable, regardless of what's happening with the U.S. economy or stock market. The advantage for health insurers is that it typically affords them relatively strong premium pricing power. In other words, they're often able to increase premiums to ensure they can cover rising treatment costs.

In addition to strong premium pricing power, Elevance has relied on acquisitions to expand the reach of its potentially higher-margin healthcare services subsidiary Carelon. This includes the buyouts of home health provider CareBridge, as well as BioPlus, which is a specialty pharmacy catered to patients with complex and chronic conditions. This healthcare services focus can increase margins and keep users within Elevance Health's ecosystem.

Shares of Elevance Health are currently valued at 11 times forecast earnings for 2026, which represents a 19% discount to its average forward earnings multiple over the last half-decade. This should provide ample downside protection amid heightened stock market volatility.

American Tower

The fifth billionaire money manager who was purchasing shares of an exceptionally safe stock in advance of Wall Street's historic volatility is Viking Global Investors' Ole Andreas Halvorsen. Among the 86 stocks Halvorsen holds stakes in, the brand-new acquisition of 897,340 shares of specialty real estate investment trust (REIT) American Tower (NYSE: AMT) is what stands out.

American Tower is best-known for its ownership of roughly 149,000 cellular communication towers in the U.S. and 21 other countries. Large telecom companies lease access to these towers for the antennas that make their 4G and 5G wireless networks tick. Approximately 45% of American Tower's fourth-quarter revenue came from America's big-three telecom companies, with another 28% in sales tracing back to international telecom tenants. More than half of these existing leases extend to 2030 or beyond, which leads to highly consistent funds from operations.

However, American Tower is also dipping its toes into the water to take advantage of the growing artificial intelligence (AI) and tech boom. As of the end of 2024, it was operating 29 data centers, many of which were in metropolitan U.S. cities. Though data center leasing represents only 10% of total sales at the moment, it's the company's fastest-growing segment.

The final puzzle piece that makes American Tower a safe stock to own is its dividend. In exchange for preferred tax treatment, REITs dole out most of their profits in the form of a dividend. American Tower stock is currently yielding in excess of 3%.

Should you invest $1,000 in Philip Morris International right now?

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The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Philip Morris International wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $495,226!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $679,900!*

Now, it’s worth noting Stock Advisor’s total average return is 796% — a market-crushing outperformance compared to 155% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 10, 2025

Sean Williams has positions in Sirius XM and Teva Pharmaceutical Industries. The Motley Fool has positions in and recommends American Tower and Berkshire Hathaway. The Motley Fool recommends Philip Morris International and recommends the following options: long January 2026 $180 calls on American Tower and short January 2026 $185 calls on American Tower. The Motley Fool has a disclosure policy.