Why the Russell 2000 Divergence Is the Real Risk Signal

The Nasdaq is down 5.6% in five days and the VIX has spiked to 21.7, but the Russell 2000 is barely off its highs. Lucas and Luna dig into why small-cap stocks are diverging from the broader market — and what that means for investors. They examine the data on June 10, 2026: the Russell 2000 is down only 2.6% while the Nasdaq has plunged. Is this a rotation into value, or a warning that the selloff hasn't hit the most vulnerable stocks yet? They discuss how similar divergences played out in 2000 and 2008, what the yield curve at 40 basis points says about recession risk, and why the VIX at 21.7 with the VVIX at 107.6 suggests the market is underpricing tail risk. If you're wondering whether to buy the dip or wait, this episode gives you the framework to decide. #Russell2000 #Nasdaq #VIX #VVIX #SmallCaps #MarketDivergence #StockMarket #Selloff #YieldCurve #RecessionRisk #Investing #Finance #BearMarketPodcast #FexingoBusiness #BusinessPodcast #June2026 #BuyTheDip #RiskManagement Keep every episode free: buymeacoffee.com/fexingo