Envestnet's D'Auria on Markets, Fed Policy

The video discusses the implications of the New York Fed's balance sheet runoff and the market's preparedness for it. It highlights the focus on rate hikes and their impact on the market. The speaker shares insights on investment strategies, emphasizing the importance of diversification and considering small value stocks. The discussion also covers the potential of defensive sectors like utilities during economic uncertainty.

What is the projected average monthly balance sheet runoff by the New York Fed through 2024?

• $50 billion

• $80 billion

• $100 billion

• $120 billion

Which type of stocks are suggested to diversify into during potential recessionary times?

• Large-cap growth stocks

• Small-cap value stocks

• Tech-heavy stocks

• High-yield bonds

What is a key consideration when investing in small-cap companies according to the transcript?

• Focusing on highly profitable companies

• Investing in unprofitable companies

• Avoiding all small-cap companies

• Only investing in tech small-caps

Which sector is mentioned as a defensive investment during periods of economic uncertainty?

• Financials

• Consumer Discretionary

• Technology

• Utilities

What is a potential downside of interest rate increases for utilities?

• Increased profitability

• Higher operational costs

• Negative impact despite being defensive

• Decreased demand