Wells Fargo’s Davidson: Investors Perplexed, But Happy

The transcript discusses the current state of investor sentiment and market trends following Trump's election, highlighting the perplexity among investors and the market's bullish behavior. It explores the rotation from defensive to cyclical sectors, driven by institutional investors, and the challenges faced by active management in a politically influenced market. The conversation also delves into the balance between active and passive strategies, the role of smart beta investing, and the implications of moving away from market cap weighting.

What is the general sentiment of retail investors towards the equity market post-Trump's election?

• Indifferent

• Extremely bearish

• Less bearish

• Highly bullish

Who is primarily leading the shift into cyclical sectors from defensive ones?

• Government bodies

• Foreign investors

• Institutional investors

• Retail investors

What market condition is becoming more favorable for stock pickers?

• A stable market

• A stock picker's market

• A declining market

• A volatile market

How does political analysis influence active fund management?

• It has no influence

• It is more important than central bank cues

• It is less important than market trends

• It is equally important as economic indicators

What is a potential implication of moving away from market cap weighting in indexing?

• A mid cap bias

• A small cap bias

• No change in bias

• A large cap bias