The Acquirers Podcast

Michael Gayed on Leading and Lagging Indicators, Small Caps, Inflation, Big Tech | S07 E05

14 snips
Feb 10, 2025
Michael Gayed, Publisher of the Lead Lag Report, dives into investment strategy dynamics and market indicators. He discusses the tension between value and growth investing in a tech-centric world and critiques misleading economic narratives that affect public perception. Gayed also examines the divergence between small-cap stocks and credit spreads, reflecting on the implications of these signals for investors. With a touch of humor, he underscores the unpredictable nature of financial markets and the significance of navigating time in investing.
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INSIGHT

Passive Bubble

  • The current market favors passive investing in large-cap tech stocks.
  • However, this concentration creates a bubble that will eventually burst.
INSIGHT

Tech Dominance

  • Tech dominance drives growth's outperformance over value, US over international, and large over small caps.
  • This raises concerns about a potential fundamental shift where tech becomes too big to fail.
INSIGHT

Structural Insanity

  • Passive flows disproportionately benefit the largest market capitalizations, creating a self-perpetuating cycle.
  • This structural insanity distorts market signals and rewards companies based on size rather than fundamentals.
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