A Very Rare Stock Market Event Is Here

In the last 2 weeks, the small companies have surged in value, while the bigger companies have started to fall.

So why is this happening? And what does history tell us about what’s going to happen next?

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Disclaimer:
The information in this video is general information only and should not be taken as constituting professional advice from Hamish Hodder.
Hamish Hodder is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances.
Hamish Hodder is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this video.

[maxresdefault]

god all these bots. i might have to actually watch the video instead of scrolling the comments for a summary. FML.

[darraghcollins]

Thank you for this! I've been trying to figure out why Berkshire Hathaway spiked recently and I found that the correlation between russell 2000 and brkb was very high recently. Probably the perception that small caps are value stocks

[danielpronk]

Great video, Hamish! Congrats on all the success on YouTube. It's awesome to see your channel doing so well :)

[glowwurm]

“Great rotation” money rotates sectors not indexes, what we’re seeing is a rotation into the KRE and a gamma squeeze as a consequence in the RTY! It won’t end well, if 40% of them were unprofitable before they won’t fair well in an economic slowdown irrespective of rate cuts.

Ppl appear to have missed the fact that the RTY has a forward PE of +30 at a time where earnings are missing at the fastest rate in 5 years!

[MwSwagZone]

Buffet indicator and the Sham rule lead me to believe there will be a huge pull back in 12 months time, I also believe S&P has not yet peaked for 2024

[cardrivingdude]

You should look up whats going on with better help and then decide if you want to be associated with them. Not a good look.

[JohnPong-lyzg]

Tom Lee is like Cramer... I dunno if Id trust googlie eyes there

[shadowninja]

I've done the opposite of this rotation in my 401K recently, I cut my (already small) exposure to small and mid cap stocks after months of thinking about it. IMO a lot of the historic data about small and mid caps are worthless for one reason, inflation has destroyed it. The $10 billion dollar threshold to become a large cap stock has become such an absolute joke that meme stocks with zero fundamentals, zero viable paths to profitability, and sometimes even zero revenue can pass that threshold since it's never been adjusted for inflation. The small and mid caps of the past 50+ years are large cap stocks today. The best small and mid cap stocks can easily graduate into the large cap stock territory in little time, where it won't graduate out when it continues to win.

Everything went DOWN Friday except bonds.

[petrchaloupka]

The whole trend of these indices is influenced by the fact that Nvidia and other big companies related to artificial intelligence are going through a short recession after a big growth. That's why there has been a divergence in recent days.
The next development will depend on the continuation of the earnings season. What profits will Meta, Microsoft, etc. report. And then there will either be a decline or a rise. The economy is performing well so far, so even any downturn should be short-lived.

[charleshacker]

You are excellent at summing up an issue.

[vanshpatel]

Really loved your public speaking keep up the same energy and the video was very helpful. Thank you for all the effort you put behind this ❤

[salto]

what about betterhelp selling client data?

[jjfinect]

Great video. I agree with Tom Lee. Yesterday and today I purchased IWM. I will probably purchase more before the month is over.

[AZ-blqs]

We thought there was a great rotation into value stocks last year, and snap! The growth stocks still went up and up soon after.

[arifualtaye-ew]

Of course, the things that affect the price of shares are: the increase in the number of shares, the increase in government debt, and of course, the decrease in this price will improve the market potential, and each share will earn one-tenth of the profit of the previous share.

[justgeneric]

Many of them are looking at the UK. They want to see the tax situation before investing. UK has a stable, fiscal, pro business government when EU going a bit unstable with right wingers. Also plenty of undervalued stocks with 5-8% yields and doubling yields in 2-5 years.

[jgeehdeewestsdegethemuLa]

Well if theyre small cap it wouldn't take much from sp500 to make them go parabolic since lower cap is far more volatile

[mikaellobban]

The music is beautiful. Mind me asking what it is?

[brodyalden]

The markets are wrong about rate cuts.