Mike Wilson

That's right.

It's one of the main things.

Now, DREG is a big part of that.

The capital spending is a part of that.

Those can happen without the Fed cutting significantly.

But it would really solidify it for me.

And if you go back and look at all these different economic cycles,

Small caps and lower quality stocks typically don't outperform until the Fed gets below two-year treasury yields.

We've documented this.

So, by the way, it doesn't mean these stocks can't work in absolute terms.

It just means that relative outperformance you typically get in that early cycle rotation needs Fed funds to be much lower.

Well, I think they're being patient here.

They're doing their job.

I'm not one to sit here and criticize the Fed left and right.

What I see is just a very weird economic cycle.

And I think we've solved the puzzle a little bit on this, and that's why I feel fairly confident that our narrative we laid out this year has played out now.

I'm getting evidence in the marketplace, and I feel more confident in that narrative.

And that's sort of the difference.

I just think they're not there yet.

They're not where I am in my head.