Morning Meeting: Small-Cap Opportunities

The video discusses the impact of GDP growth on small cap companies, highlighting the need for accelerated growth to improve earnings. It compares earnings beats between S&P and small cap companies, noting weaker performance in the latter. The discussion covers market trends, potential corrections, and the influence of election cycles on small cap stocks. The video also addresses the implications of potential Fed rate hikes on small cap valuations.

What was the GDP growth rate in the third quarter, and how does it compare to the forecast?

• 2.7%, which is lower than forecast

• 3.0%, which matches the forecast

• 2.9%, which is higher than forecast

• 2.5%, which is lower than forecast

What percentage of small cap companies are beating earnings expectations?

• 50%

• 60%

• 36%

• 45%

What is the expected earnings growth for small cap companies according to the forecast?

• 3-4% increase

• 2-3% decrease

• Flat to 1-2% increase

• 5-6% increase

How do small cap stocks typically perform after an election?

• They perform poorly

• They perform well

• They remain stable

• They tend to decline

What is a concern regarding small cap stocks in relation to the Fed's potential actions?

• They are undervalued

• They are overvalued

• They are unaffected by interest rates

• They are expected to decline regardless of the Fed's actions