New ETF Launched: The Strategy to Beat the Market

Summary

Brian Belski, founder of Humulus Investment Strategies, discusses the launch of his new ETF, ticker HIS, designed to outperform the S&P 500. The strategy, honed since 2017, focuses on selecting 45 stocks based on valuation, earnings growth, operating performance, and technical factors, across all 11 S&P sectors, with overweight positions in communication services, industrials, and utilities. Despite being underweight the 'Magnificent Seven' tech stocks, the portfolio achieved 25% returns in 2023 and has shown strong performance in 2024. Belski anticipates a potential market correction driven by an earnings peak rather than a broad economic slowdown, advising investors to view such dips as buying opportunities. He highlights the industrial sector as undervalued, contrasts the current market with the dot-com bubble, and sees potential in areas like homebuilders as interest rates may decline.