Neuberger Berman: Stocks at Record Highs

The video discusses market trends, focusing on small cap stocks and early cycle growth. It highlights a shift from one-way to two-way market dynamics, with increased volatility and rising interest rates. The speaker outlines changes in asset allocation, moving from underweight to neutral in US large cap stocks, while maintaining a global equity bias. The impact of the Delta variant on markets and vaccine efficacy is also examined, emphasizing short-term volatility and opportunities for equity exposure.

What was the primary reason for being overweight in small cap stocks?

• Weak economic growth

• Decreasing interest rates

• Early cycle growth and strong market directionality

• High inflation levels

What change was made to the US large cap stocks position?

• Moved from neutral to overweight

• Moved from overweight to underweight

• Moved from underweight to neutral

• Maintained an underweight position

Why is there a focus on trimming fixed income exposures?

• Interest rates are expected to fall

• Spreads have widened significantly

• Corporate credit fundamentals are negative

• Rates have fallen and are likely to rise

How does the Delta variant affect market dynamics?

• It has no impact on markets

• It causes short-term volatility

• It leads to a one-way market

• It stabilizes market conditions

What is the observed efficacy of mRNA vaccines against the Delta variant?

• Low efficacy

• Moderate efficacy

• High efficacy

• No efficacy