Why Citi's Levkovich Sees the S&P 500 Sinking to 4,000

The video discusses the impact of bond yields on market dynamics, highlighting changes in market composition since 2008. It explores the effects of tax collection on bond issuance and outlines current sector preferences and investment strategies, emphasizing a shift towards value-oriented areas while maintaining some growth exposure.

How have bond yields influenced investment strategies in recent months?

• They have increased the focus on tech stocks.

• They have had no impact on investment strategies.

• They have caused a shift towards value stocks.

• They have led to a preference for growth stocks.

What was the composition of the S&P 500 in terms of market cap weight in 2008?

• 30% cyclicals and 30% growth

• 50% cyclicals and 50% growth

• 40% cyclicals and 20% growth

• 55% growth and 15% cyclicals

What is the current market focus in the US according to the transcript?

• A heavy focus on growth stocks

• A balanced focus on growth and value

• A shift towards defensive stocks

• An equal focus on cyclicals and growth

Which sectors are the investment team currently interested in?

• Energy and materials

• Consumer durables and autos

• Tech hardware and equipment

• Capital goods and financials

What is the investment team's stance on tech hardware and equipment?

• They are underweight on tech hardware.

• They have a neutral stance on tech hardware.

• They are avoiding tech hardware completely.

• They are overweight on tech hardware.