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A Small-Stock Index Recently Set a New Record. What's Next for Small Caps?

1. Russell 2000 hits record highs as Fed cuts rates. 2. Small caps expected to outperform due to low valuations. 3. iShares Russell 2000 ETF shows 15% return in recent months. 4. Valuations predict 8% returns for small caps versus 1% for large caps. 5. ISM Manufacturing Index suggests economic contraction at 49.

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FAQ

Why Bullish?

Recent rate cuts favor small-cap performance, historically benefiting S&P 500 as well.

How important is it?

Rate cuts impact borrowing costs, boosting overall market sentiment and S&P 500 outlook.

Why Short Term?

Rate cuts typically lead to immediate market reactions; past examples confirm this.

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