The terrifying bull market broadened its base yesterday, driven by expectations of easy money.
Small caps tend to be more dependent on borrowing to finance operations than the cash-rich mega-cap players.
So it’s no surprise that as the Fed acquiesced to cutting interest rates Wednesday, small caps, as measured by the Russell 2000 Index (IWM) broke out of a four-year range:
Small cap stocks broke through an existing trading range to new all time highs yesterday. (Source: TrendSpider)
Adam O’Dell suggested during yesterday’s Grey Swan Live! that the iShares Russell 2000 ETF, IWM, might be the index to watch – it could outperform the S&P 500 for the rest of the calendar year.
~ Addison
P.S. Our paid-up Grey Swan Investment Fraternity members got a masterclass in Adam’s data-driven approach to small-cap investing. That includes how he identified gold mining stocks before they outperformed the Mag 7 AI stocks over the past year.
Sign up now to become a member and join us for next week’s Live.
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If you have any questions for us about the market, send them our way now to: feedback@greyswanfraternity.
How did we get here? Find out in these riveting reads: Demise of the Dollar, Financial Reckoning Day, and Empire of Debt — all three books are now available in their third post-pandemic editions. You might enjoy one or all three.
