Charts used with the permission of Bloomberg Finance L.P. This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and ...
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Charts used with the permission of Bloomberg Finance L.P. This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and investment adviser representative with Mott Capital Management. Mr. Kramer is not affiliated with this company and does not serve on the board of any related company that issued this stock. All opinions and analyses presented by Michael Kramer in this analysis or market report are solely Michael Kramer’s views. Readers should not treat any opinion, viewpoint, or prediction expressed by Michael Kramer as a specific solicitation or recommendation to buy or sell a particular security or follow a particular strategy. Michael Kramer’s analyses are based upon information and independent research that he considers reliable, but neither Michael Kramer nor Mott Capital Management guarantees its completeness or accuracy, and it should not be relied upon as such. Michael Kramer is not under any obligation to update or correct any information presented in his analyses. Mr. Kramer’s statements, guidance, and opinions are subject to change without notice. Past performance is not indicative of future results. Neither Michael Kramer nor Mott Capital Management guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment commentary presented in this analysis. Strategies or investments discussed may fluctuate in price or value. Investments or strategies mentioned in this analysis may not be suitable for you. This material does not consider your particular investment objectives, financial situation, or needs and is not intended as a recommendation appropriate for you. You must make an independent decision regarding investments or strategies in this analysis. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Before acting on information in this analysis, you should consider whether it is suitable for your circumstances and strongly consider seeking advice from your own financial or investment adviser to determine the suitability of any investment.
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L O L… That ship has sailed pal… Huge correction coming.
Fantastic analysis and paints a very strong picture of how a game squeeze juiced the small caps and the inverse correlation between large cap tech and small caps. That said there is a really important piece of the analysis missing from this thesis. Small caps historically underperform at the beginning of the rate cut cycle and begin to outperform at the end of rate cutting cycle. Which seems counter intuitive but actalually makes perfect sense. Fed cuts rates when they anticipate softening in consumer and corporate credit. Making this probably the worst time to jump into small caps just before a possible weakening in the economy or recession not to mention the Trillion dollars elephant sitting on small banks books CRE! Even with Trump and yield curve the banks could soon have to realize 100’s of Billions of dollars of bad loans sitting on there books that haven’t been marked to market. Nobody wants to talk about it bit it is a real problem!