Small Cap Stocks Can Still Catch Up: Parker

Adam Parker discusses the potential of small caps driven by M&A in 2015, highlighting their valuation and margin expansion potential. He contrasts this with large caps and notes the overlooked mid caps. The discussion shifts to interest rates and the Fed's potential actions, with insights from Vincent Reinhart. The impact of rising yields on equities, particularly financials, is also explored.

What are some reasons Adam Parker is optimistic about small caps in 2015?

• They are heavily impacted by lower oil prices.

• They have more margin expansion potential.

• They have reached an all-time high in valuation.

• They are less affected by a strong dollar.

Why might mega cap companies not be rewarded for share buybacks?

• They are focusing too much on growth.

• They are not investing in new technologies.

• The market prefers growth through acquisitions.

• They are not affected by M&A activities.

What is a potential benefit of increased M&A activity in small and mid-cap companies?

• Expansion of premiums for stocks not acquired.

• Reduction in market competition.

• Increased visibility for mega cap companies.

• Decreased stock premiums for surrounding companies.

What is Vincent Reinhart's view on the Federal Reserve's actions in 2016?

• The Fed will act earlier than consensus.

• The Fed will not act at all in 2016.

• The Fed will increase interest rates significantly.

• The Fed will focus on reducing inflation.

At what point does the two-year yield significantly impact equity price action?

• When it exceeds 1.

• When it is exactly 0.75.

• When it is at 0.65.

• When it is below 0.5.