Go Long on U.S. Small Caps: BofAMLs David Woo

The video discusses the changing correlation between the US dollar and equities, highlighting a shift towards US assets. It recommends investing in US small caps due to their lower exposure to global markets. The discussion also covers consumer confidence, economic metaphors, and global asset allocation strategies. The US economy is performing well, with strong GDP and earnings growth, despite global uncertainties.

What is the current relationship between the US dollar and US equities?

• They have a negative correlation.

• They are not correlated.

• They have a positive correlation.

• They have a fluctuating correlation.

Why is investing in US small caps recommended?

• They are more volatile than large caps.

• They have lower exposure to the dollar and international markets.

• They are a crowded trade.

• They have high exposure to international markets.

How is the US economy's connection to the global market described?

• As a linear relationship.

• As a permanent decoupling.

• As a bungee cord that stretches and tightens.

• As a stable and unchanging connection.

What is the suggested approach to international investment?

• Invest only in emerging markets.

• Adopt a global perspective with asset allocation.

• Ignore asset allocation.

• Focus solely on US markets.

What is the investor sentiment towards the US economy despite positive indicators?

• Investors are highly optimistic.

• Investors are largely skeptical.

• Investors are indifferent.

• Investors are overly confident.