

The key US equity theme for 2025
17 snips Jan 24, 2025
Shawn Tuteja, who oversees ETF and custom baskets volatility trading at Goldman Sachs, shares insightful market strategies. He discusses how the shift in the Fed's policy may make 'quality' stocks the stars of 2025, spotlighting firms with robust balance sheets. Tuteja also dives into effective hedging techniques in turbulent markets, emphasizing the importance of custom strategies over generic ones. The conversation wraps up with the potential implications of new tariff policies on various sectors and their influence on market dynamics.
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Equity Market Performance
- The past two years of equity returns have been remarkable, exceeding 20% annually, a feat not seen since before the dot-com bubble.
- This success is attributed to the belief in a "Fed put" and the Fed's policy of cutting rates during growth.
Shifting Market Narrative
- A shift in market narrative suggests the Fed's aggressive rate-cutting into growth is ending.
- Future rate cuts will likely occur due to significant inflation drops or labor market weakening.
Investing in Quality
- Prioritize quality in equity markets for 2025, focusing on companies with strong balance sheets and cash flow.
- This approach favors secure, high-quality names likely to outperform regardless of economic conditions.