Latest news with #MichaelArone
Yahoo
12 hours ago
- Business
- Yahoo
This could be the biggest threat to the rally, strategist says
The S&P 500 (^GSPC) is inching closer to another record high, but State Street Global Advisors US SPDR Business chief investment strategist Michael Arone cautions that there is something that could derail the rally. Find out what it is in the video above. To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
Yahoo
10-06-2025
- Business
- Yahoo
Advisors Go Risk-On Heading Into 2H
Advisors are feeling frisky heading into the back half of 2025. The vast majority of financial advisors — along with some prominent analysts — are calling for a significant market runup in the remaining two quarters of the year. More than two-thirds of advisors said they expect the S&P 500 to advance 10% or more by year-end compared with May lows, according to an InspereX survey of 829 financial advisors released last week. While a quarter of those advisors expected the index to finish flat, just 8% are expecting a pullback. FactSet analysts are now projecting S&P 500 companies will grow earnings by 9% this year, and while that is significantly lower than the 15% projected back in January, it will probably be enough to ward off a bear market, said Michael Arone, chief investment strategist at State Street Global Advisors. 'The uncertainty that roiled markets complicates decision-making,' Arone told Advisor Upside. 'But the increased volatility in the first half of the year has created an opportunity for investors to make adjustments to better position portfolios.' READ ALSO: Morgan Stanley, American Funds Earn Top Rankings From Financial Advisors and Retirement Contributions Hit All-Time High, Fidelity Says Sure, tariffs wreaked havoc in the first quarter, but the Trump administration's pivot has been a boon for the market since, and helped the sky-high valuations of mega-cap tech companies come back to reality. Another plus could be the Fed resuming its rate-cutting cycle later this summer, Arone said. 'After a challenging first quarter for stock market performance, valuations are in a much better place,' he said. 'Investors are in the uncomfortable position of waiting and seeing across multiple dimensions over the next few quarters.' Then, there's the fun fact that Barack Obama, Trump 1.0, and Joe Biden also suffered early volatility in their first 100 days in office, ahead of significant rallies. Historically, the first year of the presidential cycle is the strongest, Arone said. 'All of this supports financial advisors' belief that the S&P 500 will be up by 10% at the end of the year,' he said. The InspereX survey found advisors may be leaning toward risk-on investments: Nearly half (49%) of advisors said equities will be the best performers of 2025, followed by gold in a distant second place, then cryptocurrencies. The most volatile assets through yearend are expected to be equities (44%) and, of course, crypto (36%). Don't Chase AI. For advisors looking to reinforce portfolios, Arone suggested high-quality companies with stable earnings, balance sheets and dividends. They may also want to revisit portfolio allocations to international and emerging markets stocks — especially if they haven't owned them in a while. But, while the tried-and-true AI companies were all the rage in recent quarters, their massive technology investments probably won't benefit clients that invest in them today. 'Look towards tech companies that will benefit from AI capex spending at better valuations,' he said. This post first appeared on The Daily Upside. To receive financial advisor news, market insights, and practice management essentials, subscribe to our free Advisor Upside newsletter. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
28-05-2025
- Business
- CNBC
'Not so sure' if big tech spenders will keep being the winners, says State Street's Michael Arone
Michael Arone, State Street Global Advisors, joins 'Power Lunch' to discuss Nvidia's impact to the overall stock market, why the market has rewarded the big spenders and much more.
Yahoo
14-05-2025
- Business
- Yahoo
Active ETFs Surge in $2T ETF Market Boom: State Street
The global ETF market is on track to achieve a historic milestone with flows projected to reach $2 trillion by the end of 2025, according to State Street Global Advisors' latest ETF Impact Report. This remarkable growth comes as innovation in active management and new asset categories transforms how investors build portfolios. Active ETF strategies are rapidly moving from the periphery to the mainstream of investment portfolios, capturing 32% of all ETF flows as investors seek more dynamic approaches to navigate market uncertainty, according to the State Street report. This shift toward active management is pronounced in fixed income, where investors are looking beyond traditional high-yield options to areas like bank loans and collateralized loan obligations. "The gap between adoption and opportunity suggests that ETFs are still in the early innings of their evolution and their role in portfolio construction is poised to grow even more in the years ahead," wrote Anna Paglia, executive vice president and chief business officer at State Street Global Advisors, in the report. Active ETFs have seen extraordinary momentum, with global active fixed-income ETF assets reaching $350 billion as of December 2024. State Street projects this figure will double to $700 billion by year-end 2026 as investors seek real-time adjustments to changing market conditions. "As global central banks pivot from rate hikes to rate cuts, investors are re-evaluating bond positioning and leaning on active ETFs for real-time adjustments," wrote Michael Arone, chief investment strategist at State Street Global Advisors, who co-authored the report with Matthew Bartolini, head of SPDR Americas research. This trend spans global markets, with active fixed-income ETFs growing 33% in the Asia-Pacific region last year and European inflows reaching $2 billion in 2024. The search for yield has catalyzed growth in specialized fixed-income categories. High-yield bond ETFs hold $118 billion in assets, while CLO ETFs have rapidly expanded to $54 billion. By 2026, these securitized credit products are expected to collectively surpass traditional high-yield bond ETFs in total assets. Digital assets and thematic investments represent another major growth area. Global crypto ETF assets surged 255% year over year to reach $127.7 billion in 2024 following regulatory advancements. Meanwhile, AI-themed ETFs are driving record flows for thematic investments, with $2.4 billion collected in just the first two months of 2025. Nearly half of these flows ($1.1 billion) came specifically from robotics and AI-focused ETFs. The report also highlights a notable generational divide in adoption patterns. Younger investors are embracing newer ETF categories at much higher rates, with 69% of millennials investing in non-traditional assets compared to 46% of baby boomers. According to State Street, eight in 10 advisors now report that these evolving ETF categories play a valuable role in long-term planning and retirement strategies, signaling a fundamental shift in how professionals approach portfolio construction for | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Hill
03-04-2025
- Business
- The Hill
Trump's tariffs spur stock meltdown
The Dow Jones Industrial Average fell more than 1,679 points Thursday, closing with a loss of 4 percent. The S&P 500 index plunged 4.8 percent, and the Nasdaq composite sunk 6 percent on the day. The Dow and S&P each suffered their worst day of losses since June 2020, while the Nasdaq took its heaviest single-day hit since March 2020. While the scale of the day's losses is partly due to the stock market's rapid growth since 2020, Thursday marked a new low for Wall Street after months of growing concern about Trump's trade agenda. 'The Trump administration may be playing a game of chicken with trading partners, but market participants aren't willing to wait around for the results. Instead, investors are selling first and asking questions later,' Michael Arone, chief investment strategist at State Street Global Advisors, said in a Thursday analysis. Speaking to reporters Thursday before flying to his Miami resort, Trump compared the new import taxes to recovery from surgery. 'It was an operation, like when a patient gets operated on, and it's a big thing. I said this would exactly be the way it is. We have $6 [trillion] or $7 trillion coming into our country,' Trump said.
