IWMRussell 2000BearishRussell 2000

3w ago on

Now up, a @CNBC guest is confidently recommending the purchase of small and mid caps ($IWM). $IWM has declined from $305 to $270 in a matter of only a few months. $IWM is -$6 today , -3.5%. She says she has been in the trade for a while - so she has experienced a large drawdown. Her catalyst is earnings - but the EPS growth is not coming from small or mid caps. And the need to diversifty (diversify losing positions)? Why exactly should we listen to your guest? Not being argumentative - but why no pushback or challenge to her thesis? Respectfully, where is the value added to a viewer? If there is any one from @cnbc or elsewhere who thinks I am being unjustifiably mean or ad hominem - please tell me and if you make sense I will retract and correct ... Thanks for your attention to the matter. @KeithMcCullough @Hedgeye_HGRO @RPKInvestor @HedgeyeDJ @gnoble79

IWMRussell 2000BearishRussell 2000

4w ago on

I would love to hear @TheJudgeCNBC respond to Josh Brown's contention that small cap stocks or the 493 (non Mag7) will likely catch up when interest rates decline (making up for a possible correction of large cap). There is a difference today from past cycles - especially compared to 1999 (near the end of the https://t.co/6SSWhuHkGg boom) which is the year most comparison are made. Specifically market structure has changed dramatically. The market is no longer dominated by active management - it is dominated by passive management (ETFs, quants, etc.) Inflows AND outflows go into the largest companies in the S&P and that will not likely change. It is self fulfilling. The $IWM is statistically insignificant and will not likely garner inflows permitting a rotation he descives... Greenlight's David Einhorn has done alot of work and engaged in multiple interviews regarding this subject. @terranovajoe @KeithMcCullough @HedgeyeDJ