Macro views

Quality may offer source of defense during market turmoil

April 09, 2025 - 2 min read

Chief Executive Officer, Chief Investment Officer, and Portfolio Manager – Gateway Investment Advisers, LLC

Gateway market perspective

Market volatility experts from Gateway Investment Advisers, specialists in options-based investment strategies, examine key volatility trends each month and risk management ideas to help investors stay invested for the long run.

February 2025 highlights:

March Madness can be an exciting time of year for college basketball fans, but sometimes within equity markets, the madness lives for an extended period in the form of missed expectations, drawdowns, volatility, and growth.
Given recent volatility related to global trade policy and geopolitics, many investors may be feeling a little too much madness. Thankfully, the quality factor may offer investors the opportunity for balance.
High-quality companies have shown potential to outgrow average or low-quality companies over time and may offer broad market participation and a source of defense during market turmoil.
When considering historical inflationary environments ranging between 2% and 4%, quality had the highest average monthly return of all the factors and outpaced the broad S&P 500^® Index.
Key takeaway: The quality factor offers potential durability and reprieve for investors, which is increasingly important in today’s world.

Gateway market perspective - February 2025

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Quality may offer source of defense during market turmoil

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