IWM
Small caps are crushing the broader market with a 17 percent year to date gain as plunging volatility exposes a massive broadening of corporate earnings.
Earnings power is breaking out of the Mag 7 and flooding into smaller companies, making US small caps a buy as they target 43% earnings growth in 2026.
Capital is fleeing bloated mega-cap tech stocks to scoop up beaten-down small companies, which analysts project will deliver massive 48% earnings growth.
Small cap earnings and margins are finally rocketing higher after a stagnant year, fueling a 1.5% weekly outperformance for the IWM ETF.
Capital is fleeing the exhausted tech giants that make up 40% of the market and pouring into forgotten Main Street small businesses.
NFIB optimism at 16-month low signals deteriorating small-business fundamentals, pressuring small-cap equities lower
Small cap earnings growth is outpacing price appreciation, collapsing their PEG ratio and driving a fundamentally backed market breakout.
Small caps at new all-time highs and the great rotation out of 7 names into 100 keeps running.
Small-caps are highly sensitive to the stagflationary environment of low growth and persistent inflation described in the belief.
The Black Widow hedge trade is broken: small caps outperforming Nasdaq signals deleveraging that hurts hedge funds
Rotate out of abundance (tech/software) into scarcity (energy, materials), so be long small caps vs Nasdaq
Russell 2000 small caps rip 50-60% this year while Mag 7 stays flat as money broadens out.
Small caps significantly outperform large caps this year as Mag 7 deconcentration takes hold
Long scarcity short abundance: small caps, equal-weight semis broaden out as concentration breaks