Momentum Strategies Have Gone Too Far, Wells Fargo’s Harvey Says

The video discusses the over-reliance on momentum strategies during recessions, highlighting their unsustainable growth and the risks involved when markets recover. It draws parallels with past market behaviors in 2003 and 2009, emphasizing the need for investors to diversify and consider smaller market capitalizations and cyclicality for better returns. The speaker predicts modest stock market returns for 2021 and suggests focusing on financials and smaller caps for higher returns.

What does the speaker suggest for achieving higher returns in the stock market?

What factors does the speaker mention that could lead to more competitive rates of return?