S&P 500 Will Underperform Russell 2000, Interactive Brokers' Sosnick Says

The video discusses the current market trends, focusing on the S&P 500, NASDAQ, and crude oil, highlighting a risk rally. Despite recent gains, the S&P 500 remains in a volatile range, with bearish signals due to lower lows and equidistant highs. Steve Sosnik from Interactive Brokers provides insights, suggesting market consolidation driven by FOMO among institutional investors. The video also compares the performance of the S&P 500 and the Russell 2000, noting the latter's underperformance and potential for short-term gains due to its domestic focus.

What is the significance of the recent three-day rally in the S&P 500, NASDAQ, and crude oil?

• It highlights a decrease in market volatility.

• It suggests a stable bond market.

• It shows a risk-on rally with investors moving into stocks.

• It indicates a bearish market trend.

According to Steve Sosnik, what is driving the current market trends?

• A strong economic recovery.

• Fear of missing out among institutional investors.

• A decrease in global trade tensions.

• Increased government spending.

What has been the performance of the S&P 500 over the past year according to the discussion?

• It has shown consistent growth.

• It has experienced a major decline.

• It has been flat, with minimal gains.

• It has significantly outperformed the Russell 2000.

What is the primary focus of the S&P 500 compared to the Russell 2000?

• The Russell 2000 is primarily large-cap exporters.

• The Russell 2000 focuses on international markets.

• The S&P 500 is primarily large-cap exporters.

• The S&P 500 focuses on small-cap domestic companies.

What strategy is suggested for investors considering the spread between the S&P 500 and the Russell 2000?

• Buy Russell 2000 mini and sell S&P 500 E Minis.

• Buy S&P 500 E Minis and sell Russell 2000 mini.

• Invest in T-bills for safety.

• Avoid both indices due to high risk.