Oppenheimer Funds Is 'Overweight' U.S. Small-, Mid-Caps

The video discusses the current market sentiment, highlighting a transition phase with no clear direction. It explores investment strategies for cautious yet opportunistic investors, emphasizing a defensive stance. The divergence in growth between the US and other global markets is analyzed, with a focus on US small and mid-caps. Portfolio adjustments include hedging emerging market currency exposures and shifting duration posture from underweight to overweight, considering the Fed's interest rate hikes.

What is the current market sentiment according to the transcript?

• The market is in a transitional phase with no clear direction.

• The market is stable with consistent growth.

• The market is clearly bearish.

• The market is clearly bullish.

What investment strategy is being adopted in response to the market's transitional phase?

• Shifting towards a more defensive portfolio stance.

• Focusing solely on large-cap stocks.

• Avoiding any changes to the portfolio.

• Aggressively investing in emerging markets.

How is the growth divergence between the US and the rest of the world being addressed?

• By underweighting US small and mid-cap stocks.

• By overweighting US small and mid-cap stocks.

• By investing heavily in European markets.

• By avoiding US markets altogether.

What change has been made to the bond market strategy?

• Maintaining a short duration posture.

• Focusing on high-risk bonds.

• Shifting from underweight to overweight duration.

• Avoiding any bond market investments.

Why is the overweight duration strategy considered attractive?

• Because enough is priced in bond markets despite Fed rate hikes.

• Because the Fed is expected to lower interest rates.

• Because the bond market is expected to crash.

• Because short duration is more profitable.