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

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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.

On this TCAF Tuesday, Josh Brown is joined by Nick Colas and Jessica Rabe, co-founders of DataTrek Research, to discuss the biggest misconceptions in the market, Nvidia and tech overcrowding, energy and oil stocks, the Sahm Rule Recession Indicator, and more! Then, at 37:22, hear an all-new episode of What Are Your Thoughts with Josh and Michael Batnick!

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