Bloomberg Intelligence's 'Equity Market Minute' 1/6/2021

Gina Martin Adams from Bloomberg Intelligence discusses the potential benefits for small caps, value equities, and emerging market stocks in 2021, driven by economic recovery and political changes. Small caps may perform better under Democratic leadership due to fiscal spending and monetary policy. Emerging markets face challenges from a strong dollar, weak economic conditions, and trade policies, but these factors may improve, benefiting their equities.

Which type of stocks are expected to benefit from the 2021 economic recovery and US elections?

• Healthcare stocks

• Technology stocks

• Small cap stocks

• Large cap stocks

Under which political leadership have small cap stocks historically performed better?

• Democratic-led Washington

• Republican-led Washington

• Independent-led Washington

• Bipartisan-led Washington

What is one of the factors currently boosting small cap stocks?

• Easy monetary policy

• Flat yield curve

• High interest rates

• Decreasing revenue prospects

What has been a challenge for emerging market equities over the last two years?

• Stable trade policies

• Strong dollar

• Weak dollar

• High economic growth

Which factor is likely to change in the coming year to benefit emerging market equities?

• Stable economic conditions

• Unpredictable trade policies

• Weak economic conditions

• Strengthening dollar