Citi Cautions Investors on Lack of Realized Volatility

The video discusses the current state of market cycles, highlighting low volatility in U.S. equity markets and the lack of significant pullbacks in 2021. It examines the dynamics of the equity market, noting the breakdown in correlation and the shift towards quality investments. The discussion also covers cash strategies in the face of inflation, advising against holding excessive cash due to its diminishing value. Finally, the video emphasizes the importance of market differentiation and selective investing, focusing on fundamentals and earnings to identify winners and losers.

What does the term 'flight to quality' refer to in the context of this market analysis?

In what ways should investors be selective in their investment choices according to the analysis?