Stay in the Know

Todd Sohn

ETF Strategist

Patrick Rista

Advisory Sales

(646) 292-7984

prista@strategasasset.com

Demystifying Year 3 of a Bull Market

02/06/2025

Loading video...

This week, Todd Sohn talks managing expectations in the third year of a bull market, how the levered long vs. inverse ETF ratio could signal market trends, and the shifting landscape from fixed income mutual funds to ETFs.
Definitions
The S&P 500 is a stock market index tracking the stock performance of 500 of the largest companies listed on stock exchanges in the United States.  
An exchange-traded fund (ETF) is a pooled investment security that can be bought and sold like an individual stock.  
Fund flows represent the cash that goes into or out of companies, financial assets, sectors, or other market categories.   
The SPDR S&P 500 ETF Trust (SPY) is an exchange-traded fund that seeks to track the performance of the S&P 500 index, which is a basket of the largest publicly traded companies in the U.S. SPY is the oldest ETF listed on a U.S. exchange and is one of the most popular ETFs in the world.
An inverse exchange-traded fund (ETF) is a financial instrument that provides returns that are the opposite of the returns of an underlying index or asset. Inverse ETFs can be used to profit from or hedge against market declines.
A mutual fund is a type of investment that pools money from many people to invest in a variety of assets like stocks, bonds, or other securities.
Fixed Income Exchange-Traded Funds (ETFs) are investment products that give you exposure to the performance of a diversified basket of bonds.
Fixed income mutual funds are those mutual fund schemes whose underlying assets are fixed-income securities, such as - government securities, debentures, corporate bonds, and other money market instruments. These funds are also broadly known as debt funds.
The iShares Core US Aggregate Bond ETF (“AGG”) seeks to track the investment results of the Bloomberg U.S. Aggregate Bond Index. The index measures the performance of the total U.S. investment-grade bond market.
Equity ETFs invest in a basket of company stocks (also known as equities or shares). They are the most common type of ETFs.
Assets under management (AUM) is the market value of the investments managed by a person or entity on behalf of clients. AUM is used in conjunction with management performance and management experience when evaluating a company.
A bull market reflects a price trend in which prices rise for an extended period of time.
A leveraged exchange traded fund (LETF) is a security that uses financial derivatives and debt to amplify the returns of an underlying index or other assets it tracks.

This communication was prepared by Strategas (“we,” “us,” or “our”), a brand that offers investment advisory services through Strategas Asset Management, LLC, an SEC Registered Investment Adviser, and provides research to institutional investors through Strategas Securities, LLC, a broker-dealer and FINRA member firm and an SEC Registered Investment Adviser. Information regarding market or economic trends, or the factors influencing historical or future performance, reflects the opinions of management as of the date of this communication, and are subject to change. This communication is provided for informational purposes only and should not be construed as an offer, recommendation, nor solicitation to buy or sell any specific security, strategy, or investment product. The information contained herein has been obtained from sources we believe to be reliable, but no guarantee of accuracy can be made. This communication does not constitute, nor should it be regarded as, investment research or a research report or securities recommendation and it does not provide information reasonably sufficient upon which to base an investment decision. This is not a complete analysis of every material fact regarding any company, industry, or security. Additional analysis would be required to make an investment decision. This communication is not based on the investment objectives, strategies, goals, financial circumstances, needs or risk tolerance of any particular client and is not presented as suitable to any other particular client. Past performance does not guarantee future results. All investments carry some level of risk, including loss of principal.

Strategas Asset Management, LLC and Strategas Securities, LLC are affiliated with Robert W. Baird & Co. Incorporated ("Baird"), a broker-dealer and FINRA member firm, and an SEC Registered Investment Adviser, although the firms conduct separate and distinct businesses.

The ETFs described herein are referenced solely for illustrative purposes and should not be construed as an investment recommendation. An investment in exchange traded funds involves risk, including the possible loss of principal. For important disclosures and risks relating to each ETF referenced herein, see each respective funds’ prospectus or contact your financial professional.

Demystifying Year 3 of a Bull Market

02/06/2025
The Market Anxiety Barometer

01/30/2025
What’s Going On in the Bond Market?

01/22/2025
Gauging Market Anxiety

01/17/2025
ETFs in 2025 vs. 2024

01/08/2025