RiverFront's Felton on Markets Outlook

The video discusses investment strategies, focusing on sector allocation, inflation impacts, and market outlook. It highlights a barbell approach, balancing technology and cyclical sectors, while being underweight in defensive sectors. The discussion covers inflation pressures, supply chain issues, and corporate earnings, noting strong profit margins and cash reserves. The outlook for 2022 suggests slower earnings growth but remains optimistic due to strong consumer demand and economic growth. The video also explores positioning strategies around inflation and the role of the Fed, emphasizing equities for long-term returns.

Which sectors are being underweighted due to a bullish outlook on recovery?

• Financials and Energy

• Healthcare and Real Estate

• Utilities and Staples

• Technology and Industrials

What was a key positive aspect noted during the earnings season?

• Positive tone from corporate management

• Record low profit margins

• Decline in energy costs

• Decrease in supply chain pressures

What is the expected trend for earnings growth in 2022 compared to 2021?

• Same as 2021

• Lower than 2021

• Higher than 2021

• Unpredictable

How is the Fed's trend mean analysis related to inflation described?

• Exactly 3%

• Below 1%

• Above 5%

• Around 2.3%

What is the primary use of fixed income in the current investment strategy?

• For high returns

• For short-term gains

• For speculative investments

• For ballast against volatility