Small Caps Are Beating Tech in 2026 Here Is Why

The Russell 2000 just had its best first half in 35 years, outperforming the Nasdaq by a wide margin. Lucas and Luna unpack what's driving the rotation from mega-cap tech to small-cap value: regional bank resilience, domestic manufacturing policy, and the end of the 'go big or go home' era. They look at historical parallels, including the 2000-2006 small-cap run, and ask whether this shift has legs or is just a mid-cycle catch-up trade. Specific numbers anchor the conversation: the Russell's 1.3 percent five-day gain, the VIX dropping to 16.68, and the inverted yield curve slowly normalizing. A measured take on whether investors should follow the flow or stay put. #SmallCaps #Russell2000 #Nasdaq #MarketRotation #ValueStocks #Investing #Finance #Business #BearMarketPodcast #Fexingo #EconomicShift #YieldCurve #VIX #MichaelBurry #JimPaulsen #SmallCapOutperformance #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo