As Donald Trump prepares to take office for a second term, market expert Larry Glazer is cautioning investors against over-diversification into popular sectors like Big Tech. Instead, he’s advocating for strategies that diversify beyond these areas, such as dividend yield and value investments.
Glazer, managing partner of Mayflower Advisors, points out that several key factors have changed since Trump’s first term, including higher inflation rates. This could create new challenges for the economy and financial markets. To navigate this uncertainty, Glazer recommends considering alternative ETFs like the ProShares Short Bitcoin ETF, which benefits from a decline in bitcoin prices.
Glazer also favors international stocks with premium valuations, citing the iShares MSCI EAFE Value ETF as an attractive option. This ETF provides exposure to high-quality multinationals with a 4%+ dividend yield, offering investors an alternative income stream and historically lower P/E ratios compared to US stocks.
By shifting focus away from over-exposed sectors like Big Tech, Glazer believes investors can tap into new opportunities for value and yield in international markets. As the Trump administration may bring back leadership from previously unloved areas of the market, diversification could be a wise choice.
Source: https://www.inkl.com/news/best-etfs-from-this-advisor-includes-gutsy-bet-against-bitcoin