Resurgence of Small Caps

The discussion focuses on the potential resurgence of small cap stocks, which had shown remarkable outperformance against larger companies historically. This performance decline is attributed to several factors, including high dependency on economic conditions and interest rates. For a brief period, small caps outperformed the S&P 500, marking the largest gap in 40 years, but this trend faded quickly. Observers remain eager to understand if this might signal a genuine turnaround or if it's merely false hope, as small caps continue to struggle against the steady performance of large tech companies.