Rotation Into Small Caps 'Has Legs,' Says Shalett of Morgan Stanley

The video discusses recent market trends, focusing on the Russell index's performance and the potential for continued growth. Lisa Shannon from Morgan Stanley provides insights into the market's shift towards safety, dominated by FANG stocks, during the recession. As signs of economic reopening emerge, particularly in Europe and the US, there is optimism about a shift towards more cyclical and value-oriented stocks. The discussion highlights the valuation gap between major tech stocks and the broader market, suggesting potential opportunities for investors.

What recent trend in the market is highlighted at the beginning of the discussion?

• The rise of the Russell index

• The decline of tech stocks

• The fall of the Dow Jones

• The stability of the S&P 500

What is the primary reason for the market's shift towards safety, according to Lisa Shannon?

• Rising interest rates

• Government stimulus packages

• Dominance of major tech companies

• Increased consumer spending

What is the potential timeline for the gradual reopening mentioned in the discussion?

• June

• April

• May

• July

Which type of stocks does Lisa Shannon suggest might see a continued move?

• Dividend stocks

• Tech stocks

• Cyclical and value-oriented stocks

• Growth stocks

What is the valuation gap between major tech companies and the rest of the market?

• Tech companies are valued at 15-17 times earnings

• Tech companies are valued at 46 times earnings

• Tech companies are valued at 30 times earnings

• Tech companies are valued at 20 times earnings