Small Cap Stocks Should Fare Well This Year: BofA's Hall

The video discusses the midcap strategy for Bank of America, focusing on the equity market, particularly small caps. It highlights the impact of rising interest rates on large cap stocks like the S&P 500 and the potential benefits for small caps. The discussion also covers the performance of value versus growth stocks, noting the influence of COVID-19 on these trends. The video concludes with insights into the dynamics of small caps in the market and the opportunities for stock pickers.

What is a key reason small cap stocks are considered attractive in the current market?

• They have higher dividends.

• They are more stable than large caps.

• They have relatively attractive valuations.

• They are less affected by interest rate changes.

How do rising interest rates generally affect large cap stocks?

• They make them more attractive.

• They hurt their valuations.

• They have no impact.

• They increase their valuations.

What factor has been correlated with the performance of value versus growth stocks?

• Interest rate changes

• COVID-19 case trends

• Unemployment rates

• Inflation rates

What is a common perception about small cap stocks?

• They are always more profitable.

• They lack the scale to become larger.

• They are less risky than large caps.

• They have higher growth potential.

What opportunity does the current market provide for stock pickers?

• Higher risk with no reward

• Limited options due to market saturation

• Stable returns with passive management

• Better performance from active managers

Which small cap benchmark is considered higher quality?

• Russell 2000

• S&P 500

• S&P 600

• Russell Chief 1000

What has been the trend for active fund outflows recently?

• They have completely stopped.

• They have increased significantly.

• They have remained stable.

• They have started to slow down.