📈Most clients are still overweight cash and need to get back into the market.
💼The rally in November and December has posed a challenge for reinvesting.
💰There are opportunities in both stocks and bonds to increase capital appreciation.
📉The S&P 500 is trading at higher PE multiples, but smaller midcap stocks offer relatively cheap options.
📈Small and midcap stocks tend to be the most sensitive to growth and should outperform as growth accelerates.
Why are most clients still overweight cash?
—The rally in November and December has made it challenging for clients to reinvest.
What are the opportunities for investors in stocks and bonds?
—There are opportunities for capital appreciation in both stocks and bonds.
Are smaller midcap stocks a good investment?
—Smaller midcap stocks offer relatively cheap options and tend to outperform as growth accelerates.
Is the S&P 500 overvalued?
—The S&P 500 is trading at higher PE multiples, but there are opportunities in smaller midcap stocks.
How should investors navigate the market's recent weakness?
—Investors should consider getting back into the market and focus on opportunities for capital appreciation.
00:00The market's recent weakness presents an opportunity for investors to get back in.
00:14Most clients are still overweight cash and need to reinvest.
00:36There are opportunities in both stocks and bonds for capital appreciation.
01:45The S&P 500 is trading at higher PE multiples, but smaller midcap stocks offer relatively cheap options.
02:56Small and midcap stocks tend to outperform as growth accelerates.
