Ed Campbell, QMA Portfolio Manager and Managing Director joins the Yahoo Finance Live panel to discuss the latest market action.

Video Transcript

ZACK GUZMAN: And Ed, I mean, perhaps maybe this is just, again, kind of what we saw last year where investors have to grapple with, OK, what pieces of this $1.9 trillion proposal are actually going to come through? So when you look at it, you were already projecting this recovery we've seen play out in the last few months continue here. But how much more fuel to the fire does 1.9 trillion, as it's proposed, maybe add to that?

ED CAMPBELL: Well, 1.9 million would-- 1.9 billion would add tremendous fuel to the fire. But as you point out, it's going to be difficult to get that through Congress with Democrats holding only the narrowest majority and with generally needing to get 60 votes to get something through the Senate.

So I think what we're seeing today is, I mean, the reflation trade, the reopening trade has been dominating year-to-date and pretty much since the election. And you're seeing a little bit of buy the rumor, sell the news. And people are focused more on the difficulties of getting the plan through Congress now that the actual plan is out. I do think that we will ultimately get more stimulus.

But it's probably likely to be a fraction of that. But, you know, the economy is in pretty decent shape, and the question is, do we even need a $1.9 trillion stimulus bill at this point?

AKIKO FUJITA: Does this change your positioning in the market at all? We have seen so many guests who've talked about sort of this rotation that's happening with value over essentially growth stocks. When you look at names like-- or sectors like tech, when you think about the plan that has been put forward, the expectations of it, how do you look at that in relation to your portfolio and where you see the opportunities right now?

ED CAMPBELL: Yeah, so nothing has really changed for us based on today's news. We do think that 2021, the global economy is likely to see a V-shaped vaccine-driven economic recovery. I think a lot of the consensus expectations are probably a little too conservative in terms of what type of growth we're likely to see in the United States and globally.

We think there's a lot of pent-up demand. We're likely to see inventory restocking, financial conditions are pretty buoyant, monetary conditions continue to be accommodative. And the fiscal money continues to come regardless of what ultimately gets passed. I do think something will get passed and that the fiscal thrust for 2021 is likely to still be supportive.