David Sowerby: Tilted to Offense in My Portfolios

The video discusses the current state of the bull market, focusing on Dow 20,000 and investment strategies. It highlights the benefits and risks of investing in small and mid cap stocks, considering their volatility and potential for high returns. The impact of corporate tax reform on the market is analyzed, along with the challenges faced by public sector pension plans due to unrealistic return assumptions. The discussion emphasizes the importance of strategic investment decisions in navigating market trends.

What is the primary reason for maintaining a healthy allocation in small and mid-cap stocks according to the first section?

• They offer guaranteed returns.

• They are less volatile than large caps.

• They have a higher chance of doubling each year.

• They are more stable during political changes.

How do small and mid-cap stocks compare to larger caps in terms of volatility?

• They are less volatile.

• They are equally volatile.

• They are more volatile.

• They have no volatility.

What is a key factor to consider when investing in small-cap stocks?

• Their ability to generate cash flow.

• Their market capitalization.

• Their popularity among investors.

• Their historical performance.

What is the expected impact of fiscal and tax policy changes on small-cap stocks?

• Negative impact compared to large caps.

• No impact on small caps.

• Positive impact compared to large caps.

• Equal impact on small and large caps.

What is the challenge faced by public sector pension plans as discussed in the final section?

• Eliminating all risk from investments.

• Achieving a 7% return with low risk.

• Reducing the assumed rate of return.

• Increasing the assumed rate of return.