Krosby: Active Management May Actually Work in 2017

The video discusses the impact of Trump's election on the stock market, focusing on expectations for tax cuts and regulatory changes. It analyzes the financial sector's response, the role of the 10-year yield, and strategists' market projections. The discussion includes economic improvement, corporate earnings, and the influence of 'animal spirits.' It concludes with investment strategies, comparing active and passive management, and market sentiment.

What were some of the reasons people believed Trump would be good for the market?

• Pro-growth policies and tax cuts

• Increased government spending

• Stricter financial regulations

• Higher interest rates

How did the 10-year yield affect the financial sector after Trump's election?

• It led to a decrease in financial stocks

• It suggested a weaker economy

• It had no significant impact

• It indicated a stronger economy and boosted financials

What is the consensus projection for market growth in the coming year?

• 4% to 4.5%

• 1% to 2%

• 10% to 12%

• 7% to 8%

What is a key factor that strategists believe will influence market projections?

• Corporate tax cuts

• Rising inflation

• Interest rate hikes

• Increased government debt

What is the current sentiment among retail investors regarding the market?

• Overwhelming optimism

• Indifference and lack of interest

• Skepticism and caution

• Euphoria and high confidence

What investment strategy might be more effective in 2017 according to the discussion?

• Active management

• Real estate investment

• Passive investment

• Cryptocurrency trading

What is the market betting on regarding economic confidence?

• An increase in CEO and small business confidence

• A decline in multinational investments

• A decrease in consumer confidence

• A stagnant economic outlook