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Why one Wall Street analyst sees a major opportunity in unloved small-cap stocks - MarketWatch

1. Small caps have lagged behind large caps for over a decade. 2. Emanuel predicts small caps may rally, amid weak sentiment. 3. Seasonal trends historically favor small caps in June. 4. Low valuations of small caps could drive their performance. 5. Economic forecasts predict modest growth, aiding small caps.

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FAQ

Why Bullish?

The article suggests a potential turning point for small caps, possibly boosting RUT performance. Historically, periods of low sentiment have led to small-cap rallies, such as following Trump's election.

How important is it?

The analysis focuses significantly on RUT, indicating a strong potential for price movements based on sentiments and forecasts.

Why Short Term?

Seasonal trends indicating small caps' outperformance in June can have immediate effects, as seen in previous rallies.

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