Wall Street Breakfast Markets don't like uncertainty
Mar 17, 2025
In this discussion, Steven Cress, VP of Quant Strategy at Seeking Alpha, shares his expertise on navigating market turbulence. He emphasizes the barbell approach for portfolio protection, blending high-yield dividends with strong fundamentals. They also delve into the impacts of tariffs on market sentiment and how political climates affect investment strategies. Cress urges investors to remain calm and strategic, even as uncertainty looms over the markets.
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Market Uncertainty
- Markets can normalize bull and bear periods.
- Uncertainty, however, creates maximum volatility and corrective phases.
Market Rotations
- Policy changes and executive orders create market uncertainty, causing rotations to defensive sectors.
- Investors often sell high-performing stocks during these rotations, impacting prices.
Barbell Approach
- Remain disciplined and focus on fundamentals during market turmoil.
- Adopt a barbell approach: rotate into dividend-paying stocks for downside protection while seeking opportunities in fundamentally strong companies.