Small Caps' Good Run Has Further to Go: Mainstay Capital

The video discusses the inverse correlation between NASDAQ and the 10-year yield, highlighting the impact of rising yields on tech stocks. It explores how stimulus measures benefit small cap stocks, especially in the context of economic recovery and vaccine rollout. The video also analyzes the implications of a strengthening dollar on large cap companies and the S&P 500. Finally, it examines the banking sector's advantages from a steepening yield curve, including increased profitability and the potential for dividend resumption.

What is the relationship between NASDAQ 100 and the 10-year yield?

• Positively correlated

• No correlation

• Inversely correlated

• Directly correlated

How does the stimulus affect small domestic companies?

• It harms them

• It benefits them significantly

• It only benefits large companies

• It has no effect

What is the expected trend for the dollar according to the transcript?

• Staying the same

• Strengthening

• Fluctuating

• Weakening

Which companies are most affected by a rising dollar?

• Small domestic companies

• Tech companies

• Large-cap companies relying on exports

• Startups

What is the impact of a steepening yield curve on banks?

• Has no impact

• Increases net interest margin

• Reduces dividends

• Decreases profitability

What financial instrument is mentioned as benefiting from the steepening yield curve?

• Gold

• Regional banks ETF (KRE)

• Bonds

• Tech stocks

What recent news is considered positive for the banking sector?

• Introduction of new regulations

• Reduction in stress tests

• Ability to resume dividend increases

• Decrease in interest rates