We Have 'Beat Up' The Word Democratization: Huszczo

Summary

Sam Huszczo, CIO of SGH Wealth Management, argues the US bull market remains healthy with earnings growing faster than prices, and rallies often persist beyond three years. He highlights his firm's exposure to momentum factor ETF JMOM, equal-weight strategies, and small caps, each supported by rotation, low correlation, and broad outperformance. He also warns against speculative leveraged ETF products and criticizes the push of private credit to retail investors.

• Bull market fundamentals: earnings growth is compressing valuations, and history suggests multi-year runs after the three-year mark.
• JMOM momentum ETF is rotating into healthcare, telecom, and discretionary while trimming memory/tech holdings.
• Equal-weight strategies have a -0.52 correlation with momentum and are beating the market alongside momentum.
• Small caps are having their fastest first half in 20 years and are outperforming large caps across every GICS sector.
• Leveraged single-stock ETFs and ETF parlays are seen as a sign of excessive greed and should be avoided.
• Private market 'democratization' is criticized for pushing private credit onto retail investors with mismatched time horizons.