Bloomberg Intelligence's 'Equity Market Minute' 3/27/2019

Gina Martin Adams from Bloomberg Intelligence discusses the current state of the equity market, focusing on the S&P 500's potential consolidation phase. She highlights the inversion of the yield curve and its alignment with other indicators, such as the non-confirmation from small and midcap stocks. The analysis shows large caps reaching new highs while small and mid caps lag. The sector scorecard indicates a defensive tilt in portfolios, with utilities and real estate leading. The video concludes with a summary of these insights.

What is one of the key indicators suggesting the S&P 500 might consolidate?

• Rising interest rates

• Decrease in consumer spending

• Inversion of the yield curve

• Increase in unemployment

How have large cap stocks performed compared to small and mid cap stocks recently?

• All have declined significantly

• Small and mid caps have outperformed large caps

• All have reached new highs

• Large caps have reached new highs, small and mid caps have not

What does the divergence between large cap and small/mid cap stocks suggest?

• A decrease in market liquidity

• An increase in market volatility

• A potential cooling of the rally

• A strong rally across all sectors

Which sectors have bubbled to the top of the sector rankings according to the scorecard?

• Financials and energy

• Technology and healthcare

• Utilities and real estate

• Consumer goods and services

What does the current sector scorecard suggest about market strategy?

• A shift towards technology investments

• A defensive tilt in portfolios

• An aggressive growth strategy

• A focus on emerging markets