Bloomberg Intelligence's 'Equity Market Minute' 8/09/2018

The video discusses the increasing scrutiny on momentum trades within the S&P 500, particularly focusing on companies like Netflix, Facebook, and Twitter. It highlights the valuation premium of high momentum stocks and the potential for reversion due to market pressures. The analysis includes a comparison of price to book ratios and valuation premiums of high growth stocks, noting a decrease in the premium below historical averages. The video concludes with a summary of the current market conditions and potential future trends.

Which companies are mentioned as facing increased scrutiny in the momentum trades of the S&P 500?

• Apple, Amazon, and Google

• Netflix, Facebook, and Twitter

• Microsoft, Tesla, and IBM

• Coca-Cola, Pepsi, and McDonald's

What does the first chart measure in the analysis of momentum stocks?

• Median price to earnings ratios

• Median market capitalization

• Median price to book ratios

• Median dividend yield

Since when has the valuation spread of high momentum stocks remained near cycle highs?

• Early 2018

• Mid 2016

• Early 2015

• Late 2017

What is the current status of the valuation premium for high growth stocks compared to historical averages?

• Below one year, five year, and cycle averages

• Above one year average

• Above cycle average

• Equal to five year average

What might happen if scrutiny on high growth stocks continues?

• It may lead to increased investment in high growth stocks

• It may cause a shift in scrutiny towards high momentum stocks

• It may result in a decrease in stock prices across all sectors

• It may have no impact on the market