Small Caps Are Finally Outperforming Large Caps Here Is Why

The Russell 2000 is up 3.1% in the past week while the Nasdaq is flat and the S&P 500 barely budges. Lucas and Luna break down the rotation from mega-cap tech into small caps, what's driving it—falling two-year yields, a steepening yield curve, and value rediscovery—and whether this time the small-cap surge has legs. They discuss historical analogies, the risk of a bear-market rally in small caps, and how the VIX drop to 17.68 plus a falling VVIX suggest the rotation is orderly, not panicked. If you've been overweight the Magnificent Seven and ignoring the rest of the market, this episode explains why that bet might be losing steam. One concrete takeaway: when the Russell 2000 beats the Nasdaq by more than 3 percentage points in a week, it has historically preceded a broadening of market leadership—or a warning sign if earnings don't follow. #Russell2000 #SmallCaps #Nasdaq #MarketRotation #YieldCurve #ValueInvesting #MegaCapTech #VIX #VVIX #StockMarket #Investing #PortfolioManagement #Finance #FexingoBusiness #BusinessPodcast #BearMarketPodcast #MarketBreadth #EquityRotation Keep every episode free: buymeacoffee.com/fexingo