Best of Bloomberg Intelligence (03/31/2022)

The video discusses the impact of rising prices on small cap stocks, highlighting a shift in market sentiment due to geopolitical events and interest rate changes. Michael Kasper from Bloomberg Intelligence explains the differences in duration between small and large cap stocks, emphasizing the lower duration and risk of small caps. The discussion also covers the balance sheet strength and leverage concerns of small cap companies, and how current low funding costs and interest rate expectations affect them.

What recent event is mentioned as influencing the sentiment shift in the market?

• The US presidential election

• The Brexit negotiations

• The Russian invasion of Ukraine

• The COVID-19 pandemic

How does the duration of small cap stocks in the Russell 2000 compare to large cap stocks in the S&P 500?

• It is the same, indicating similar sensitivity to interest rate changes.

• It is unpredictable, varying with market conditions.

• It is higher, making them more sensitive to interest rate changes.

• It is lower, making them less sensitive to interest rate changes.

What is a key concern for small and mid cap companies according to the discussion?

• Their market share

• Their brand recognition

• Their balance sheet strength

• Their ability to innovate

What is the expected Fed funds rate by the end of the year?

• 3.5%

• 2.5%

• 4.0%

• 1.9%

How do small cap companies keep their funding costs low?

• By increasing their market share

• By reducing their workforce

• By investing in technology

• By managing high yield OS front