We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
In this episode of ETF Spotlight, I speak with Dr. Derek Horstmeyer, a professor at George Mason University School of Business and a regular contributor to The Wall Street Journal. His research focuses on ETF and mutual fund performance.
During periods of economic uncertainty, particularly at the start of a new administration, bonds—especially shorter-term ones—tend to outperform stocks. However, as uncertainty fades, stocks, and particularly small caps, often outperform bonds.
Even in uncertain times, it’s generally better for investors to focus on the long term rather than attempting to time the market. Dollar-cost averaging is especially effective in volatile markets, helping to reduce emotional decision-making.
Many experts recommend dollar-cost averaging to invest for the long term in ultra-low-cost S&P 500 ETFs, such as the Vanguard S&P 500 ETF (VOO - Free Report) , which should be a core component of any portfolio.
Recent consumer sentiment surveys indicate a darkening outlook for the economy. CEOs of many consumer-facing companies have also expressed caution about consumer spending during their recent earnings calls.
If consumers grow increasingly pessimistic about the economy, they may begin cutting back on spending, potentially triggering an economic downturn. Do sentiment metrics matter to the markets?
Many investors are choosing to stay in cash or invest in safe-haven assets like gold, which can provide an effective hedge against recessions. Assets in money market funds recently topped $7 trillion, and now, three low-cost money market ETFs are available to investors.
The SPDR Gold MiniShares Trust (GLDM - Free Report) and iShares Gold Trust Micro (IAUM - Free Report) are the lowest-cost gold ETFs, making them excellent choices for buy-and-hold investors.
Dr. Horstmeyer’s research suggests that once a stock-market trend has been identified and named, its best gains are typically behind it. This raises important questions for mega-cap stocks like NVIDIA (NVDA - Free Report) , Apple (AAPL - Free Report) , and Microsoft (MSFT - Free Report) , especially given the recent underperformance of the so-called “Magnificent Seven.”
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Navigating Investment in Uncertain Markets
In this episode of ETF Spotlight, I speak with Dr. Derek Horstmeyer, a professor at George Mason University School of Business and a regular contributor to The Wall Street Journal. His research focuses on ETF and mutual fund performance.
During periods of economic uncertainty, particularly at the start of a new administration, bonds—especially shorter-term ones—tend to outperform stocks. However, as uncertainty fades, stocks, and particularly small caps, often outperform bonds.
Even in uncertain times, it’s generally better for investors to focus on the long term rather than attempting to time the market. Dollar-cost averaging is especially effective in volatile markets, helping to reduce emotional decision-making.
Many experts recommend dollar-cost averaging to invest for the long term in ultra-low-cost S&P 500 ETFs, such as the Vanguard S&P 500 ETF (VOO - Free Report) , which should be a core component of any portfolio.
Recent consumer sentiment surveys indicate a darkening outlook for the economy. CEOs of many consumer-facing companies have also expressed caution about consumer spending during their recent earnings calls.
If consumers grow increasingly pessimistic about the economy, they may begin cutting back on spending, potentially triggering an economic downturn. Do sentiment metrics matter to the markets?
Many investors are choosing to stay in cash or invest in safe-haven assets like gold, which can provide an effective hedge against recessions. Assets in money market funds recently topped $7 trillion, and now, three low-cost money market ETFs are available to investors.
The SPDR Gold MiniShares Trust (GLDM - Free Report) and iShares Gold Trust Micro (IAUM - Free Report) are the lowest-cost gold ETFs, making them excellent choices for buy-and-hold investors.
Dr. Horstmeyer’s research suggests that once a stock-market trend has been identified and named, its best gains are typically behind it. This raises important questions for mega-cap stocks like NVIDIA (NVDA - Free Report) , Apple (AAPL - Free Report) , and Microsoft (MSFT - Free Report) , especially given the recent underperformance of the so-called “Magnificent Seven.”
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com.