John Mowrey

But I will say this.

Not a lot of folks realize this.

The Russell 2000 after today, that's the small cap index, it's up 5.5%.

The Russell mid-cap is up 5%.

And, you know, the 1,000 is down 80 basis points.

So...

Small and mid-cap stocks are up.

And it's like, why is that?

Why is that?

And I think there's two key reasons.

The first is that you've seen a rotation away from some of the MAG-7.

So that's a very crowded trade.

And you saw some compression there.

And I think you saw compression there because folks started to be worried about, hey, maybe...

Nvidia and what it's doing to the software space and how it's breaking into being able to code more cheaply, that could have pressure on the margins with some of these large tech companies.

That's one piece of it.

But then the other is these small and mid-cap companies, what the market is signaling to me is that there's relief coming for these companies.

And I think that is pointing to rates because those have the most debt.

the most sensitive to interest rates.

And the reason I think interest rates are so important, it's easy to say interest rates, it's all about interest rates.