Working with financial advisors is my privilege.  Taking care of clients is theirs.

“You don’t have to be a weatherman to know which way the wind blows…” Bob Dylan sings in his famous song “Subterranean Homesick Blues.”  Stock indexes were mostly down in March as “Operation Epic Fury” created uncertainty.  A financial advisor friend of mine once explained to me that “uncertainty creates opportunity.”  That opportunity lies in the mispricing of stocks, sectors, indices, and interest rates.  Finding those mispriced assets is the craft of active managers.  A common question I heard in March was “why is active management getting so much attention this year?”

Active managers are typically measured against a benchmark, like the S&P 500.  An active manager (often a team effort) uses their expertise to choose securities that they believe are mispriced (buy low) and manage downside risk (sell high).  In a recent Strategas research report, “War Catalyzes Portfolio Adjustments from De-Globalization Impact,” our team highlights three themes currently in focus.  The war in Iran and its impact on the price of oil and inflation, A.I. and what the return will be for companies on this investment, and the integrity of private credit.  Just three examples of where active managers are currently engaged in adjusting portfolios for the benefit of clients.  In times of uncertainty, opportunities to capitalize and protect arise, but it DOES take a “weatherman” to know which way the wind WILL blow.

This communication was prepared by Strategas (“we,” “us,” or “our”), a brand that offers investment advisory services through Strategas Asset Management, LLC, an SEC Registered Investment Adviser, and provides research to institutional investors through Strategas Securities, LLC, a broker-dealer and FINRA member firm and an SEC Registered Investment Adviser. Information regarding market or economic trends, or the factors influencing historical or future performance, reflects the opinions of management as of the date of this communication, and are subject to change. This communication is provided for informational purposes only and should not be construed as an offer, recommendation, nor solicitation to buy or sell any specific security, strategy, or investment product. The information contained herein has been obtained from sources we believe to be reliable, but no guarantee of accuracy can be made. This communication does not constitute, nor should it be regarded as, investment research or a research report or securities recommendation and it does not provide information reasonably sufficient upon which to base an investment decision. This is not a complete analysis of every material fact regarding any company, industry, or security. Additional analysis would be required to make an investment decision. This communication is not based on the investment objectives, strategies, goals, financial circumstances, needs or risk tolerance of any particular client and is not presented as suitable to any other particular client. Past performance does not guarantee future results. All investments carry some level of risk, including loss of principal.

Strategas Asset Management, LLC and Strategas Securities, LLC are affiliated with Robert W. Baird & Co. Incorporated ("Baird"), a broker-dealer and FINRA member firm, and an SEC Registered Investment Adviser, although the firms conduct separate and distinct businesses.