2024-06-16 23:07:19 ET
Summary
- The Russell 2000 is down YTD by -1% as the soft-landing trade is collapsing, while the mega-cap led S&P 500 is up 14%.
- The economic data is deteriorating, and the Fed has turned hawkish.
- A catch-down trade in mega-caps is more likely than a catch-up trade in small-caps, as the data continues to deteriorate.
The soft-landing trades
Here is the fact, the Russell 2000 ( IWM ) is down YTD by -1%, while the S&P 500 ( SPY ) is up by 14%. Why is this important? Because, the Russell 2000 is THE soft-landing trade, or what some call the catch-up trade....
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For further details see:
The Soft-Landing Theme Is Collapsing