Will small caps or larger caps close out the year stronger?

In this episode of Stocks In Translation, Yahoo Finance's markets and data editor Jared Blikre and producer Sydnee Fried chat with Jay Woods, Freedom Capital Markets chief global strategist, who becomes the first guest to appear on the show three times. They discuss topics like seasonality, market rotation, and what could happen in a "no-landing" scenario.

Woods shares his perspective on the market’s resiliency during a typically slow period, further impacted by the aftermath of the yen carry trade collapse and a 65% spike in the CBOE Volatility Index or VIX (^VIX). “That's as resilient a market as we've seen in some time… 48 new highs and that number will probably increase,” said Woods. “It’s a bull market, and this is what you do in bull markets.”

The conversation then shifts to market rotation—when money moves from one sector or industry to another. “Rotation is the lifeblood of a bull market,” adds Woods. “This rotational trade is just showing you the strength of this market because you want to see all stocks participate… This, to me, is the most positive thing we’ve seen in the market in some time.”

They debate whether the economy is headed for a hard, soft, or no landing. In the last 60 years, the Federal Reserve has only achieved one soft landing. “It’s a very tricky thing trying to navigate this soft landing. So no landing? Yes, it could happen,” says Woods.

In today’s 'Who Wore It Better,' Woods weighs in on whether small or large caps will lead into the year-end. “I think it's [going to] be large caps because I think technology's going to catch a bid.” However, Woods isn't totally out on small caps, “Will small caps… join the party a little bit? We saw last year, October 27th to December 23rd, small caps gained over 20%, in that time period. So when they moved, they moved quickly.”

Find this episode's transcripts and more episodes of Stocks in Translation at https://finance.yahoo.com/videos/series/stocks-in-translation/

Thoughts? Questions? Fan mail? Email us at yfpodcasts@yahooinc.com.

Yahoo Finance's Stocks in Translation is hosted by Jared Blikre and Sydnee Fried, and produced by John Tejada.

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