The Quality Signal That Beats the Market. Plus, Can Metals Stay Hot?

In this Barron's Streetwise podcast episode, host Jack Howe interviews Jared Woodard, Head of the Research Investment Committee at B of A Securities, about investing in quality stocks. The discussion begins with a review of the significant gains in metals during 2025 and forecasts for 2026, highlighting factors such as economic demand, supply interruptions, and fears of monetary debasement. The conversation transitions to quality stocks, addressing the challenges of defining "quality" and the high valuations of many quality funds. Jared advocates for using free cash flow as a key metric for identifying quality stocks, explaining its historical performance and potential for future returns. He also suggests diversifying investment strategies by considering international small stocks with a value tilt, credit sectors like emerging market debt, and real assets, emphasizing the importance of dynamic approaches to commodities and thematic investments. The episode concludes with recommendations for specific ETFs and stocks that align with the discussed investment strategies.