Bloomberg Intelligence's 'Equity Market Minute' 1/26/2021

Gina Martin Adams from Bloomberg Intelligence discusses the current state of global stocks, noting that equity risk premiums have returned to long-term averages. Despite this, there are still values to be found, particularly in smaller cap stocks in emerging markets. The analysis highlights the differences in valuations between large and small cap stocks and the impact of economic growth on the equity market outlook.

What does the return of equity risk premiums to long-term averages suggest about stock pricing?

• Stocks are overvalued.

• Stocks have priced in lower interest rates.

• Stocks are unaffected by interest rates.

• Stocks are undervalued.

What is the main focus of the first section of the transcript?

• The influence of global events on stock prices.

• The role of government policies in stock valuation.

• The return of equity risk premiums to long-term averages.

• The impact of inflation on stocks.

Which type of stocks might still offer discounts according to the second section?

• Large cap stocks in developed markets.

• Small cap stocks in emerging markets.

• Large cap stocks in emerging markets.

• Small cap stocks in developed markets.

What is the trend in emerging market spreads as mentioned in the final section?

• They are rising.

• They are unpredictable.

• They are stable.

• They are decreasing.

What opportunity is highlighted in the final section regarding smaller cap stocks?

• They may offer opportunities as the economic outlook improves.

• They are facing more risks.

• They are becoming less attractive.

• They are being ignored by investors.