00:00 Speaker A
Let’s go here to the Russell 2000. Here’s the year to date. Uh just roaring back. And by the way, these over here in September, October, those are record highs. So it is now challenging those highs. Not the first time we’ve been here. Here’s a five-year chart. We’ve been here before in 2021, 2024. And is this going to be the breakout moment? Uh and it’s not just small caps, it’s also microcraps, microcaps. and just a lot of kind of fringy speculative markets saw a lot of buying over the last four days. So interesting, going to be interesting to see if this continues into December.
00:34 Speaker B
Yeah, it will. And and Mish, I want to pick it up there because I know you’re watching small caps quite closely here. What are you watching for, what levels are you watching for, and then kind of what happens with small caps depending on that?
00:48 Speaker C
Well, first of all, good morning. And yes, obviously, I’m small caps are always on my mind. I call it Grandpa Russell because essentially that’s really going to give us the best barometer on what the health of the US economy is. And with that, now challenging new all-time highs and with the velocity and momentum we saw coming into today, very optimistic. And I think the main reason of course is that it sniffs lower interest rates to start and that will really help not just small caps, but some of the areas that really are impacted by that, which of course would be the consumer, so we saw a big comeback there, the transportation, in particular those three. So just as Jared you said before, rotation, this is a good sign and you have to be optimistic at this point.