The way ProShares’ global investment strategist and head of investment strategy group Simeon Hyman saw it during her interview with NYSE, the biggest challenge that investors were facing was trying to determine whether the U.S. economy was “really going to have a soft landing.”
Hyman explained that the economy was facing a “dichotomy” where it had “this overheated employment sector” alongside “weak manufacturing.” Speaking with NYSE’s Judy Shaw at Exchange 2023, he said that “the way that’s manifesting is, there’s a little bit of inflation that’s still lingering out there, and earnings are under attack.”
“S&P 500 margins are shrinking, so the key here is: How can we get quality outcomes?” Hyman asked rhetorically. “How can we get companies that are going to show up with earnings? How can we get some income? And how can we get some good investments in the portfolio that will be able to persevere in what are still going to be a little bit of turbulent times?”
To address these challenges, Hyman recommended that investors consider the ProShares DJ Brookfield Global Infrastructure ETF (TOLZ). What sets this fund apart from other infrastructure funds is that TOLZ focuses on “the owners and operators of infrastructure assets, so it’s not the people who build roads and stuff. That’s super cyclical.”
“These people own the assets, and you know what that means — they have tons of pricing power,” Hyman said before adding that pricing power, good income, and a solid yield were “what you need in this environment.”
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