Why markets are climbing a 'classic wall of worry'
Roundhill Investments CEO David Mazza joins Market Domination Overtime to share his perspective on market (^DJI, ^IXIC, ^GSPC) conditions for 2025. "We're in a stage of shoot first, ask questions later," Mazza tells Yahoo Finance. He explains that as markets enter the third year of the current bull market, "the challenge is that because of the amount of uncertainty that has increased, investors are taking any bit of bad news really poorly and because they want to protect the gains ... are willing to sell first and then ask those questions later." Despite this cautious sentiment, major indexes continue reaching record highs. Mazza characterizes this as climbing "a classic wall of worry," which raises important questions for market participants. "Particularly retail investors are positive on stocks, positive on the markets, vibes are good, but the market's become fragile," Mazza observes. For investment strategy, Mazza recommends covered-call approaches. This tactic allows investors to "maintain some upside, but with a cover call," he explains. "It's a way to still be exposed to the market, take a little bit of risk off the table, and do so with reducing the overall volatility of the portfolio," Mazza says. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. This post was written by Angel Smith