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Hottest Stocks of the Year, Nvidia Tops Out, Predicting Recessions With Nick and Jessica

The Compound and Friends

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Analyzing the SOM Rule for Predicting Recessions and Impact on Market Performance

The chapter delves into the SOM rule, a metric used to predict recessions based on unemployment rates, highlighting its accuracy in forecasting economic downturns. It also explores the shift in performance between large cap growth and small cap growth companies since 2020 and the potential reasons behind this trend. The conversation touches on challenges in the small cap growth universe and the impact of concentrated market domination by Big Tech and Broadcom.

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