Well, stocks do typically perform better in the wake of cuts from the Federal Reserve. My next guest has a playbook for how ETF investors can potentially take advantage of any postcut bump. Marissa Anel, Goldman Sachs Asset Management, head of ETF investment strategies, joining me uh now on set for this week's ETF report brought to you by Invesco QQQ.Marissa, thanks for being here. >> Thanks for having me. >> So, I I guess first of all to set the table, we should talk about what the Fed is going to do today ...

Core Viewpoint - The Federal Reserve is expected to cut interest rates by 25 basis points, with additional cuts anticipated through the end of the year and into the first half of next year, creating a favorable environment for certain investment strategies [2][3]. Group 1: Investment Strategies - Investors are advised to step out of cash and consider ultrashort duration bond strategies to lock in higher yields, potentially gaining 30 to 40 basis points more than cash holdings [4][8]. - The equity market, particularly through derivative income ETFs, is highlighted as a strong source of income, with $44 billion flowing into these ETFs this year, providing equity exposure with less volatility [10][11]. - Small-cap stocks are positioned as an attractive investment due to expected earnings growth of 30% next year compared to 10% for large caps, alongside increased IPO and M&A activity, which is up 30% and over 50% year-on-year respectively [15][16]. Group 2: Market Conditions - The current market environment is characterized by a backdrop of declining interest rates, which is expected to benefit small-cap companies more due to their higher floating rate debt [14][16]. - Valuations for small-cap companies remain attractive, with the median small-cap trading at a 27% discount to large caps, suggesting potential for growth as rates decrease [16]. Group 3: Active Management - It is recommended to actively manage small-cap investments rather than buying the entire benchmark, as about one-third of small-cap companies are lossmaking, emphasizing the importance of focusing on profitable companies [18].

The idea that investors must choose between income and total returns in 2025 has clearly become a false narrative. Evolution is part of life and also an important aspect of finance. Today, there are a number of appealingAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other ...