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Small-caps' latest stand

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The Russell 2000/1000 ratio is just above critical support from the 2020 lows. The Fed cycle, recession risks, and earnings growth favor large-caps, while short-term yield curve momentum, economic momentum, and valuations are moving toward small-caps. A broadening rally that includes small-caps would increase the odds of the rally continuing deep into the second half.

Ned Davis Research | Equities | U.S. Focus | Weekly

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