Edward Jones's Majahan Sees Value Outperforming Growth

The video discusses the challenges faced by big tech in a year marked by significant changes in the Fed funds rate and real yields. It highlights the underperformance of growth sectors and the defensive strategies investors are adopting in anticipation of aggressive Fed moves. The discussion also covers the economic outlook for 2022, considering scenarios of inflation and growth, and the potential impact on financials and other sectors.

What has been a significant factor contributing to the underperformance of the tech sector?

• Increased consumer spending

• Rising real yields

• Decreased interest rates

• Strong economic growth

Which sectors are investors focusing on due to their pricing power?

• Healthcare, Staples, and Utilities

• Technology and Discretionary

• Financials and Industrials

• Real Estate and Energy

What is the expected Federal Reserve action in the coming months?

• Decrease interest rates by 50 basis points

• Increase interest rates by 50 basis points

• Maintain current interest rates

• Introduce quantitative easing measures

What challenge do financial companies face due to the current yield curve situation?

• Rising net interest margins

• Flattened yield curve

• Decreased inflation rates

• Increased consumer spending

What is the likelihood of a recession in 2022 according to the discussion?

• Certain

• Unlikely

• Moderately likely

• Highly likely