First Wilshire Securities CEO Hood Discusses Small Caps

The video discusses market expectations regarding rate hikes and trade talks, focusing on small caps entering bear market territory and the potential rotation into large caps. It highlights the impact of trade negotiations between the US and China on market dynamics and the performance of growth versus value stocks. The analysis extends to cyclicals, noting their decline due to high debt and economic growth forecasts, suggesting a cautious approach to investing in these sectors.

What is one of the key topics the market is waiting for, according to the transcript?

• A new technology breakthrough

• A dovish turn in rate hikes

• A major political event

• A significant drop in oil prices

What is expected to happen between China and the US in January?

• A new trade war

• A framework agreement

• A military alliance

• A cultural exchange program

Which type of stocks have historically outperformed according to the transcript?

• Small caps

• Value stocks

• Large caps

• Defensive stocks

What is the relationship between cyclicals and PMI as discussed in the transcript?

• They usually move tightly together

• They move independently

• They have no correlation

• They are inversely related

What has been the impact on high-debt cyclicals since August?

• They have seen a slight increase

• They have outperformed low-debt cyclicals

• They are down significantly more than low-debt cyclicals

• They have remained stable