E264 – Riding the Stock Market Roller-Coaster

Trump’s tariffs have sent stock markets on a roller-coaster ride. Are investors ready for more? In this episode, ETF Strategist Bipan Rai, and host, Erin Allen, dive into the four corrective channels to watch and share ideas for defensive portfolio positioning.

Erin Allen is Director of Online Distribution at BMO Exchange Traded Funds. She is joined on the podcast by Bipan Rai, Head of ETF Strategy, ETFs at BMO Global Asset Management. Recorded live on April 9, 2025.

ETFs:

• BMO USD Cash Management ETF (ZUCM)

• BMO Global Infrastructure Index ETF (ZGI)

• BMO Gold Bullion ETF (ZGLD)

 

ZUCM, total returns as of 2025/03/31: YTD: 1.14%, 1 yr: 11.44%, SI: 9.59%

Correlation: A statistical measure of how two securities move in relation to oneanother. Positive correlation indicates similar movements, up or down together, while negative correlation indicates opposite movements.

Forward P/E ratio: The forward price-to-earnings ratio is the ratio for valuing acompany that measures its current share price relative to its forecastedper-share earnings.

The Great Depression: A significant global economic downturn that spanned from 1929 to 1939.

Personal Consumption Expenditures Price Index (PCE): A measure for capturing inflation or deflation across a wide range of consumer expenses.

The Smoot-Hawley Tariff Act of 1930: Senator Reed Smoot and Representative Willis C. Hawley raised tariffs on imported goods in an attempt to protect American industries, which ultimately led to a global trade war.

Volatility: Measures how much the price of a security, derivative, or indexfluctuates.  

Disclaimers:

The viewpoints expressed by the speakers representtheir assessment of the markets at the time of publication. Those views are subject to change without notice at any time. The information contained herein is not, and should not be construed as, investment, tax or legal advice to anyparty. Investments should be evaluated relative to the individual’s investment objectives and professional advice should be obtained with respect to any circumstance.

Any statement that necessarily depends on future events may be a forward-looking statement. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Although such statements are based on assumptions that are believed to be reasonable, there can be no assurance that actual results will not differ materially from expectations. Investors are cautioned not to rely unduly on any forward-looking statements. In connection with any forward-looking statements, investors should carefully consider the areas of risk described in the most recent simplified prospectus.

Commissions, management fees and expenses all may be associated with investments in exchange traded funds. Please read the ETF Facts or simplified prospectus of the BMO ETFs before investing. Exchange traded funds are not guaranteed, their values change frequently and past performance may not be repeated.

For a summary of the risks of an investment in the BMO ETFs, please see the specific risks set out in the BMO ETF’s simplified prospectus. BMO ETFs trade like stocks, fl