Ned Davis Research's Ed Clissold on 2021 Markets Outlook

The video discusses the market's reaction to political changes, particularly with a Democratic president and the potential for a split Congress. It explores the impact of a possible $2000 stimulus check on the economy and market sentiment. The discussion includes short-term market risks, the performance of small caps, and cyclical trades. It also covers potential market corrections in 2021 and the tech sector's valuation and performance.

What historical trend is observed when there is a Democratic president and a split Congress?

• Higher inflation-adjusted returns

• Lower inflation-adjusted returns

• Increased market volatility

• No change in returns

What is the market's primary concern regarding the Biden platform?

• Progressive tax policies

• Trade tariffs

• Marginal changes

• Interest rate hikes

What could be a short-term effect of a $2000 stimulus check?

• Reduction in inflation

• Significant boost to the economy

• Increase in unemployment

• Decrease in market volatility

What is a potential risk if market expectations are not met?

• Higher interest rates

• Increased investor confidence

• Stable market growth

• Market disappointment

What is the typical duration of a cyclical bull market following a recession?

• 8 months

• 36 months

• 24 months

• 16 months

How have the PE ratios of major tech stocks changed relative to the overall market this year?

• Remained the same

• Fluctuated unpredictably

• Decreased

• Increased significantly

What might tech stocks serve as during a market correction?

• A growth opportunity

• A defensive play

• A high-risk investment

• An inflation hedge