Alpine Macro shares the 5 most frequently asked questions from investors via Investing.com

Investing.com — In a note on Wednesday, Alpine Macro shared insights from their discussions with investors, highlighting five of the most frequently asked questions about the current market landscape.

The firm said it spent a large amount of time over the past two weeks
talking to clients at his macro conference in New York and on the road across the United States. Here are the five most asked questions:

First, the firm said many investors wonder about the preference between equal-weighted or cap-weighted indexes.

According to Alpine Macro, the current economic phase favors a broader market “meltdown” driven by cyclical sectors rather than mega-tech dominance, suggesting an advantage for the equal-weighted index, particularly through its exposure to the value and dividend yield sectors .

Second, they said questions had arisen about the impact of the US political deadlock on the stock.

Alpine Macro points out that gridlock under a potential Trump presidency would likely spur equity-friendly deal-making, while a Harris presidency could lead to more threshold episodes and heightened volatility.

Third, there was significant interest in small-cap foundations, according to the firm.

Alpine Macro believes small caps are poised to outperform large caps due to their deeper sensitivity to interest rate cuts and potential earnings growth in sectors such as tech and biopharma.

Fourth, investors are said to be closely watching China’s stimulus measures.

Alpine Macro notes that China’s aggressive stimulus could boost the global manufacturing recovery and boost sectors with international exposure such as materials and industrials.

Finally, expectations for the 3Q earnings season are mixed, with Alpine Macro forecasting earnings growth of 5-6% year-over-year, with positive surprises likely as companies adjust to the macro environment and highlight the impact AI on profitability.

These key takeaways provide investors with valuable insights into navigating the current economic and market landscape, according to Alpine Macro.