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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts -- Ignore unavailable to you. Want to Upgrade?


To: skier31 who wrote (82636)11/2/2023 4:55:01 PM
From: Sun Tzu3 Recommendations

Recommended By
ajtj99
Arran Yuan
skier31

  Respond to of 98151
 
Small caps are the key to a bull market. There has never been a new bull market without small caps outperforming for several months. Then the leadership goes back to big caps.

However, there are some nuances. Let's just say that the same logic that cause small caps to jump at the start of every bull market manifested itself yesterday. But the real question is whether or not this underlying reasoning will still be valid 3 months from now.



To: skier31 who wrote (82636)11/2/2023 7:41:27 PM
From: Lee Lichterman III2 Recommendations

Recommended By
skier31
towerdog

  Respond to of 98151
 
Yes, I saw that. The question is will rates come down before the zombies in the R2K have to roll their debt. In the previous eras he's sampling, rates were cut drastically so that was small cap friendly. Right now that isn't the case. There's a lot of small caps that are struggling just to pay their bills now. There's no way they're going to make it with rates 2-5% higher.