ANCHOR QUESTION OFF-CAMERA (ENGLISH) SAYING:

Within some of the sectors you mentioned, whether it's healthcare or industrials or others, these are global kind of companies. Do you look at more domestic-focused companies or are you okay with big multinational firms that are doing business in some of the emerging market countries?

STEPHEN WOOD, CHIEF MARKET STRATEGIST, RUSSELL INVESTMENTS (ENGLISH) SAYING:

We would look at both. And that's a great distinction between larger cap, which is more global, but then also on small cap. If you look at the Russell 2000, it's up almost 39% last year versus large cap up 32%. So, smaller cap tend to be overly exposed to US businesses, the US funding liquidity, the Fed's quantitative easing. So we would look at that as being a little rich because small caps did so well last year, so looking in larger cap more globally exposed. I think emerging markets for disciplined investors, they've got to understand which emerging markets, not all but which, are going to provide growth and the companies that can benefit from that. So I would say we are looking at global companies. We are looking- though with a US interest because relative to Europe and a lot of Asian countries, I think the US growth performance is going to be relatively stronger.

ANCHOR QUESTION OFF-CAMERA (ENGLISH) SAYING:

Some people thought heading into this year that the Fed was a risk factor for stocks, in particular, the tapering program. But it seems that the markets have digested that and are looking at that interest rise over a year from now potentially. What is the big risk for stocks right now?

STEPHEN WOOD, CHIEF MARKET STRATEGIST, RUSSELL INVESTMENTS (ENGLISH) SAYING:

So there's the known-knowns and the unknown-unknowns. I think the Fed is going to be always in the background. It's like the canvass that we ought to paint on. And I think the Fed is a risk if they get it wrong, like on 1994 for example. We do not consider this to be a 1994 environment where inflation spike led to a run-up in rates and fixed income did very poorly. We're looking to be kind of flattish. I think the Fed is going to be a little bit more methodical, a little bit more planned out, so I don't know that the Fed is going to have any inflation pressure to force their hand. Labor markets are still a slack. So I think the Fed can take their time and give the market information that they can digest. If there were an inflation scare that would change things, we don't think that's going to happen. But I think probably one of the biggest issues for investors right now is going to be this earnings season. It's going to be light. And revenue is going to be more important. And we think the beta gamer or the market game of 2013 becomes more a stock-pickers' game - active management picking better stocks that can generate pricing power in a challenging revenue environment. The market should do- be more friendly to them but also valuations matter. We've seen recently the high-flyer, the big momentum stocks. When valuations get ahead of themselves, eventually markets are going to care. So you want to make sure that it's a valuation-sensitive assessment.