Investing in Turbulent Times

The video discusses investment strategies in volatile markets, focusing on defensive sectors like healthcare, the role of technology and consumer discretionary stocks in economic cycles, and identifying growth opportunities during market rebounds. It highlights the importance of small caps and domestic exposure, current market sentiment, and the potential role of bonds. The impact of dollar strength on equities and portfolio positioning is also examined.

Why is healthcare considered a better defensive sector compared to consumer staples?

• Utilities are at lower valuations.

• Healthcare has higher earnings risk.

• Consumer staples have better pricing power.

• Healthcare has less sensitivity to a stronger dollar.

What is a key factor that makes technology stocks appealing during a recovery?

• They are less affected by currency fluctuations.

• They have low innovation potential.

• They are considered early cyclical stocks.

• They have high exposure to international markets.

What is a characteristic of small caps during economic recessions?

• They are domestic and cheap on valuation.

• They have high exposure to currency risks.

• They are mostly international and expensive.

• They are highly volatile and risky.

Why might investors consider holding cash or cash equivalents?

• Cash is always a bad investment.

• Cash provides liquidity and confidence during turbulence.

• Cash has high returns compared to equities.

• Cash is not affected by inflation.

What is a potential risk of holding cash for too long?

• It is not affected by market changes.

• It becomes more valuable over time.

• It loses value due to inflation.

• It provides high returns.

What is a reason for the strong performance of US equities when the dollar is strengthening?

• US equities are more volatile.

• US equities are less liquid.

• US equities have high international exposure.

• US equities are less affected by a strong dollar.

What is a reason to consider investing in bonds in 2023?

• Bonds are expected to perform well in a high-interest environment.

• Bonds are less volatile than equities.

• Bonds are more liquid than cash.

• Bonds have high short-term returns.