(This is a wrap-up of the key money moving discussions on CNBC’s “Worldwide Exchange” exclusive for PRO subscribers. Worldwide Exchange airs at 5 a.m. ET each day.) Investors focused on the possibility of a recession are looking at divided-focused investments and protection for inflation with “TIPS” bonds. Also former Fed Official Loretta Mester gives her view on Jerome Powell’s comments from Friday and how the central bank should respond to recession concerns. Pick: ProShares Dividend Aristocrats ETF (NOBL) Simeon Hyman of Proshares sees opportunities in the dividend focused ETF as market volatility continues to rattle investors. “While their prices have lagged the Mag 7, their fundamentals have not,’ said Hyman on Worldwide Exchange. Hyman’s pick of the NOBL ETF holds stocks that raise their dividend every year. It has outperformed the S & P 500 year to date. Two notable names in the NOBL: Coca-Cola and IBM, which each have a 2% dividend yield and have both seen double digit gains in 2025. “This is in the middle of the ‘style box’ which means even if we are surprised to the upside and a lot of this uncertainty clears up that doesn’t mean you’ll be left behind,” said Hyman. Time for “TIPS”, Treasury Inflation Protected Securities? Callie Cox from Ritzholtz Wealth Management says investors worried about a potential recession or other major economic slowdown and higher inflation — often referred to as ‘stagflation’ — should look to the bond market. “The bond market is interesting right now because we are staring at inflation risks,” said Cox on Worldwide Exchange, adding that Treasury Inflation Protected Securities or ‘TIPS’ could be a wise investment with the uncertainty of tariffs and other economic policies. “TIPS are that hedge against unexpected inflation and there are a lot of unexpected headlines floating around. You have to be tactical here, treasuries are the classic economic hedge, I think you have to look at the belly of the curve when you are hedging,” said Cox. Loretta Mester says “Fed Well Positioned” Former President of the Cleveland Reserve Bank Loretta Mester gave her take on Fed Chair Jerome Powell’s comments from Friday that the Central Bank sees the economy as ‘strong’ and is taking a wait and see approach to Trump Administration policies before making any rate decisions. “I think he has it basically right, I think what people are concerned about is where is the economy going, not necessarily where it is now. But I think the Fed is well placed to respond either way no matter what happens,” said Mester. Mester added: “The chaos from DOGE (Department of Government Efficiency), the uncertainty of the tariffs, that uncertainty could reduce spending and reduce hiring and we are already starting to see that when you talk to businesses… when you do scenario analysis and what could be happening to the economy going forward you have to be contemplating that there could be a more marked slowdown. Not my base base, but you have to entertain that.”
