ETF Opportunities & Tracking Market Flows

0:00All right folks Friday here and we are seeing stocks to the downside with the Dow down nearly 400 points 45,577 and we're talking about the longest losing streak since 2022 for the S&P 500. Simeon Hyman follows that global investment strategist approaches and historically we're seeing obviously a notable losing streak consecutive weeks of losses five of them. What do you think about this war and the markets? You know I had one guest who said I'm not doing anything until the war ends and then I'm going to be buying. What do you say? We know what the history is and let's park last year because that was very short conflict but Gulf War 1 and Gulf War 2 were protracted and the market within a year was up 30% not from where it ended the war but from the beginning of those wars. So we know that markets recover very nicely after military conflicts. It doesn't number one necessarily make it any easier to

1:00get through. Number two there are no guarantees but also number three it doesn't mean that you don't want to do anything to manage through it because we know the rules of compounding. If you make those losses a little bit smaller that rebound is even more valuable. So you're buying on the dips is what's happening here. I mean you must have been buying in these five weeks right? I think diversification as everybody says it is very important but there's some specific avenues here because look some of the safe havens that people count on you know aren't really working. Gold is down. Right. And it bonds I think are a tricky one. I think we can argue that the downside to long bonds is not much further so you should have some from diversification purposes but you have to have some other diversifying elements in your portfolio. So what would you recommend? I know you have some ETF picks for us as well but just in the diversification I mean what would you have allocated in certain ways? Yeah one idea that we think is really a little bit overlooked these days and important

2:00is infrastructure. But here we mean very specifically the companies that own infrastructure assets not the people that build them that's a real cyclical thing. We have an ETF ticker TOLZ. It's the Dow Jones Brookfield Global Infrastructure Index. It follows that index and the companies own the assets they own oil and gas transportation, cell towers, airports. It's up over 11 percent this year has a three and three quarters percent yield. Very importantly the ticker tells you everything you need to know. TOLZ because they're toll takers. Very inflation resistant and that has tended to zig and when the equity broader equity market zag a little bit so that's an important one. So you'll be getting that off the highs and after the war ends it's likely to continue to go higher because we're back to the infrastructure rebuild America. You have data centers you have manufacturing all those things to build here at home right? The durability is important. Price is important you're

3:02talking half the price to book of the S&P 500 but remember the distinction. The builders might get a bid but these are the owners who are much more stable so even if there's gridlock in Washington you're in a good spot. Interesting let's talk about the coin desk. Pro shares coin desk 20 crypto ETF. Tell me about that. Look in this environment we know that gold has not done its job in this military conflict but meanwhile yes Bitcoin is off a couple of percent this morning but since the beginning of the conflict well into the green our suggestion is take a look at KRYP Crypt. That's a diversified approach to the crypto space and it follows the coin desk 20 index which is 20 of the largest cryptocurrencies so it's an opportunity to have a one-stop shopping diversified approach to crypto by the way it reconstitutes and rebalances every quarter because that's the space that changes and you want that dynamism. Understood and last but not least the pro shares genius money market ETF how

4:03does that work? If folks want to have some dry powder or they want to keep some cash at work while it's staying safe for near-term needs and you want to put it to work IQMM is our genius money market ETF it's the largest money market ETF and it complies with the genius act which means the stable coin guys can use it for reserves but listen if you're not a stable coin issuer it also has tighter rules around it than a regular money market more conservative no agencies and shorter maturities so it can be a very nice place to keep your cash at work. I mean ETFs have gained so much in popularity you had a record year of inflows for ETFs last year up to a few weeks ago some of the conversations I was having was record inflows again I know the war has now sort of changed things maybe but do you expect by the end of the year it'll be another record year of inflows into ETFs I mean you clearly love them and think they're a great way to go. Well folks will put their money back to work

5:07right and there's still cash on the sidelines who is cash on the sidelines before the military conflict so I think those flows will continue and it's a very effective mouth trap to be able to trade air all day long on the exchange have it right in your brokerage account it really has become a go-to investment vehicle for most investors. So this diversification strategy the way to go it's what we've always learned to try and navigate through volatility but the big picture do you feel I've seen several year-end targets and you know 7,600 7,700 a lot of the banks have come out with a lot of year-end targets at or around those levels how do you feel the year might be ending is it going to be higher than where we are today? Well that's where I go back to that history of Gulf War and Gulf two. Yes yes. I mean within a year both instances the equity markets with 30% higher what we like about the equity markets coming out of this military conflict is that fundamentals have

6:09held up. If you look at yes it's true back in Q1 last year the NASDAQ had 34% earnings growth and that was down to 12 in Q4 but guess what other sectors have picked up such that S&P 500 earnings growth has maintained low teens the whole way. That's a pretty good setup. Yeah I really have to ask you quickly because the NASDAQ is now in correction territory more than 10% off of its eyes. Is there opportunity and tech do you believe quickly? This is not the same tech of 2000 the fundamentals are stronger the earnings growth is are stronger and the comparative earnings growth still stays very strong so it doesn't seem to us that we're in the same boat that we were. So yeah 2000. It's very much part it's very much part of the military conflict and not so much a tech issue. Sammy and Hyman Global Investment Strategist Pro Shares nice to see you. Thanks for having me. Thank you so much