"What are your thoughts on the market?" - Interview questions

Have an interview coming up with a small boutique. This may seem like a very obvious and dumb question, but how would you guys go about answering this? Where would I even start, and what are the key points that I should touch on? 

 
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I would start with the current capital market environment (low bond yields, record stock market, importance of government stimulus). Also, good to talk about how the pandemic is impacting different industries (pick winners and losers)— preferably industries that the boutique does lots of deals in. Give your thoughts on where the market is headed, mention vaccine news, how the boutiques clients may be impacted (likely bootstrapped founders or LMM private equity). This could/should lead to follow-up questions that will make the conversation easier.

 

When interviewing for my ECM team, it was very S&T question heavy and all my interviewers asked me for my thoughts on the market. I would just start with the state of the current markets. S&P near all time/ 6 month highs..we are seeing a shift from x industry to z. Moving forward I see markets going this way because “macro economics indicators show x, new president will do y, this industry will do W because of this”

 

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