Why Small Caps Could Lead The Equity Market On Improving Credit Conditions
Source: SeekingAlpha
2026-01-20 01:00:00 ET
Bond markets often move ahead of equities, particularly when it comes to shifts in economic momentum. Recently, corporate credit spreads have narrowed while government bond yields have eased, a combination that typically reflects expectations for more accommodative financial conditions. Historically, bond traders have anticipated changes in monetary policy well before equity markets adjust, especially during late-cycle slowdowns.¹ ²...
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Why Small Caps Could Lead The Equity Market On Improving Credit Conditions
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