Bloomberg Intelligence's 'Equity Market Minute' 3/12/2020

Gina Martin Adams from Bloomberg Intelligence discusses the recent struggles in the US equity market, highlighting a significant valuation reset over the past three weeks. This reset, with a 20% drop in the trailing PE multiple, aligns with historical declines during economic weaknesses. Despite this, opportunities arise in large cap sectors like technology, healthcare, and consumer staples. Conversely, commodity-sensitive and cyclical value sectors such as materials, financials, and industrials remain weak.

What has the recent struggle in the US equity market led investors to anticipate?

• An increase in interest rates

• A surge in commodity prices

• A recession in the US economy

• A boom in the technology sector

By how much has the US equity market's trailing PE multiple dropped recently?

• 25%

• 20%

• 15%

• 10%

What is the average decline in valuation multiples associated with economic weakness over the last decade?

• 10%

• 15%

• 20%

• 25%

Which sectors are currently favored in the S&P 500 according to the sector scorecard?

• Technology, healthcare, and consumer staples

• Materials, financials, and industrials

• Telecommunications, consumer discretionary, and financials

• Energy, utilities, and real estate

Which sectors are identified as the weakest in the current market analysis?

• Technology, healthcare, and consumer staples

• Materials, financials, and industrials

• Telecommunications, consumer discretionary, and financials

• Energy, utilities, and real estate