2017 Market Outlook: More Upside for Small Caps?

The video discusses market performance, focusing on the Russell 2000's outperformance against the S&P 500. It explores valuation dislocations, economic growth, and tax reform impacts. The discussion includes capital expenditure's effect on shareholder strategies, the influence of a strong dollar, and market volatility. It concludes with sector analysis and investment trends, highlighting opportunities in banks, insurance, and retail.

What was a significant factor contributing to the recent outperformance of the Russell 2000 compared to the S&P 500?

• Increased foreign investments

• Valuation dislocations in small caps

• Higher interest rates

• Improved global trade policies

How does tax reform potentially impact small-cap stocks?

• It guarantees higher dividends

• It creates uncertainty in pricing

• It leads to immediate stock buybacks

• It results in lower corporate taxes

What is a potential effect of a stronger dollar on large-cap companies?

• Tighter financial conditions

• Lower interest rates

• Increased domestic sales

• Higher overseas profits

What is the relationship between the VIX and small-cap stocks?

• Higher VIX always benefits small caps

• Lower VIX leads to underperformance

• VIX above 25 can be challenging for small caps

• VIX has no impact on small caps

Which sector is considered to have more room for earnings expectations to rise?

• Technology

• Insurance

• Energy

• Healthcare

What trend is observed among US investors regarding emerging markets?

• Increased investments in emerging markets

• Preference for domestic investments

• Shift towards technology stocks

• Focus on large-cap stocks

Which sector is highlighted as having compelling valuation opportunities?

• Real Estate

• Utilities

• Retail

• Telecommunications