Downtown Josh Brown

True or false.

Periods in which equal weight or small caps would be the other way to phrase that, outperforms large caps, are sporadic periods

and short duration?

There are entire decades where an equal weight approach is better?

Yeah.

I think there's two other things.

We've never had network effects businesses on the scale that we have them now.

That's it.

So that's number one.

So that's the internet.

Number two, we stopped enforcing antitrust 25 years ago.

Both parties are guilty to some extent.

We just allowed companies to not only dominate one industry, but to spread out horizontally and dominate 12 industries.

I don't see any real political momentum to reverse that.

And so in that environment where you have network effects businesses, where the bigger they are, the more profitable they become and no wherewithal whatsoever to trust bust.

Why would you think that there's going to be any sort of durable advantage to small caps?

It's like, what is the story?

But the only thing I can come up with is a bear market.

And the small caps have less to fall because they were already at a lower multiple.

I can't come up with why that would be a durable advantage to be smaller in the year 2026.