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Motley Fool Money

Small Caps are Back!

Jul 19, 2024
Brett Schulman, CEO of Cava, shares insights on his Mediterranean restaurant chain's impressive growth and plans to expand to 1,000 locations. He discusses the current dynamics of the market, highlighting the recent spike in small-cap stocks amidst shifting investor sentiment. The conversation touches on how Cava navigates challenges in the restaurant industry and the impact of changing consumer preferences on their operations. Schulman adds a personal touch by sharing what he enjoys in his own bowl at Cava.
40:30

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Small caps like the Russell 2000 index are outperforming, showing over 10% growth in a month, signaling potential investment opportunities and challenges.
  • The recent surge in small caps aligns with positive inflation data, suggesting possible earnings improvements but uncertainty lingers on its sustainability and market impact.

Deep dives

Small Caps Surging: Russell 2000 Performance

Small caps like the Russell 2000 index have been outperforming, with a notable over 10% increase in a month amidst a historical reference to past crises. This surge follows a shift away from the dominance of large conglomerates, presenting potential opportunities and challenges for investors.

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