Schaeffers Investment Research·2025-12-16 20:30Group 1 - The tech sector has performed well in 2025, with the VanEck Semiconductor ETF (SMH) leading with a 44.6% year-to-date gain, despite recent overvaluation concerns [1] - The Dow Jones Industrial Average (DJI) is on track for its third consecutive year of positive performance, with Caterpillar Inc (CAT) being the best-performing stock, achieving a 61.8% lead for 2025 [2][3] - Caterpillar Inc is experiencing its best annual performance since 2017, with a recent peak stock price of $626.21 on December 12 [3] Group 2 - Despite the strong performance of CAT, the options market shows a higher put/call volume, ranking above 85% of annual readings, indicating a potential discrepancy in market sentiment [5] - Investors are encouraged to consider adding Caterpillar stock to their portfolios, as its Schaeffer's Volatility Index (SVI) of 30% suggests low volatility expectations, and CAT has historically outperformed these expectations [6]