19min chapter

The Compound and Friends cover image

Charts Out the A**

The Compound and Friends

CHAPTER

The Problem with Historical Data and Market Dynamics

This chapter explores the limitations of relying solely on historical data to predict market dynamics and discusses the sensitivity of the Russell 2000 index to interest rate moves. It debates whether the reaction is due to over-representation of financials or the size of companies in the index. The chapter also highlights the relationship between small caps and large caps and discusses the potential for a soft landing and a first Fed cut in May.

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