Bank of America Sees Challenges for Small Caps in Medium Term

The video discusses the current market optimism and challenges facing small caps, highlighting risks such as leverage and liquidity. It explores opportunities in the financial sector, particularly in dividends and value rotation. The discussion also covers valuations, earnings revisions, and the long-term outlook for small caps, including potential benefits from reshoring and manufacturing shifts.

What role do financials play in the current market environment?

How do current valuations of small caps compare to historical levels?

What are the implications of the trade war on small caps?