After Donald Trump's presidential victory, the stock market saw a notable rise, largely fueled by hopes for corporate tax cuts. This initial boost lifted investor confidence, but the speaker warns that the long-term outlook remains uncertain due to a drop in job openings and the looming threat of an economic recession. They point out that small-cap stocks (IWM) present a compelling short-term investment opportunity, as they are currently undervalued compared to large-cap stocks. However, the speaker stresses the importance of keeping an eye on inflation and economic indicators to gain a clearer picture of future market trends.
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