Nick Ryder

Ryder points out that while the S&P 500 is flat, there is a "resurgence from smaller cap stocks, from midcap stocks, from value stocks, foreign stocks." The underlying economy is resilient (2% GDP growth, 13% earnings growth). When the economy is strong but the top-heavy tech sector is stalling, market breadth expands. The "catch-up" trade favors the undervalued cohorts (Small/Mid/International) that were left behind during the Tech rally. LONG Broad Market Breadth (excluding Mega Cap Tech). If the "resilient economy" data turns into a hard landing, small caps and international markets often suffer higher beta drawdowns than large caps.

Ryder points out that while the S&P 500 is flat, there is a "resurgence from smaller cap stocks, from midcap stocks, from value stocks, foreign stocks." The underlying economy is resilient (2% GDP growth, 13% earnings growth). When the economy is strong but the top-heavy tech sector is stalling, market breadth expands. The "catch-up" trade favors the undervalued cohorts (Small/Mid/International) that were left behind during the Tech rally. LONG Broad Market Breadth (excluding Mega Cap Tech). If the "resilient economy" data turns into a hard landing, small caps and international markets often suffer higher beta drawdowns than large caps.

Ryder points out that while the S&P 500 is flat, there is a "resurgence from smaller cap stocks, from midcap stocks, from value stocks, foreign stocks." The underlying economy is resilient (2% GDP growth, 13% earnings growth). When the economy is strong but the top-heavy tech sector is stalling, market breadth expands. The "catch-up" trade favors the undervalued cohorts (Small/Mid/International) that were left behind during the Tech rally. LONG Broad Market Breadth (excluding Mega Cap Tech). If the "resilient economy" data turns into a hard landing, small caps and international markets often suffer higher beta drawdowns than large caps.