Bloomberg Intelligence's 'Equity Market Minute' 8/30/2021

Gina Martin Adams from Bloomberg Intelligence discusses the current state of the U.S. equity market, highlighting the performance of small cap and large cap managers. She explains the unique combination of low correlation and high dispersion in the S&P 500, which has historically led to successful stock picking. Small cap managers have benefited from defensive strategies, while large cap managers have struggled due to optimistic positioning. The future performance of these managers will depend on market trends, with small caps likely to excel in a stagnant market and large caps potentially thriving if cyclicals regain dominance.

What factors suggest that U.S. equity managers should be set up for success in stock picking over the third quarter?

What does the correlation and dispersion data indicate about the S&P 500?

What challenges are large cap managers facing in the third quarter?

How have small cap managers benefited in the current market environment?

What might happen if the market continues to surge and cyclicals regain dominance?