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The Tech Unwind

The Compound and Friends

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Small Caps Under Pressure

Equity performance on FOMC days reveals a shift in market dynamics, particularly indicating that the Russell 2000 has underperformed relative to the S&P 500. Although small caps exhibited a strong run previously, their recent performance raises doubts about their resilience. The speaker expresses skepticism towards small cap stocks, especially the Russell 2000, emphasizing the importance of recognizing long-term structural shifts that influence market trends. This indicates a cautious outlook on small cap investments, driven by a focus on eliminating underperforming assets.

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