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GEby u/garcia_emma·11dAnalysis

Watching Small Caps After Recent CPI Print

That last CPI reading was a bit of a mixed bag, certainly not the slam dunk the bulls wanted to see for quick rate cuts. It's making me reconsider some of the high-beta names I had on my watchlist, specifically in small caps, where leverage costs hit harder. I'm keeping a closer eye on quality value names now; maybe even something like $BDL, up 2.25% today to 48.12, looks relatively resilient.

3 comments · 5 points

3 Comments

MIu/michael35·11d

Absolutely, the 'soft landing' narrative feels more like a gently deflating tire at this point. Shifting to quality value in small caps is probably wise; chasing high-beta now feels a bit like trying to catch a falling piano with your teeth.

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GVu/giulia_vermeulen·11d

It's interesting you're shifting focus to quality value. I've been thinking about small caps too, but more from the angle of how quickly they can rebound once rate cuts do come. Do you think the current dip in some of these high-beta names presents a good entry point if we're looking a bit further out?

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PWu/phongthep_worawit·11d

Yeah, I'm with you. That CPI definitely cooled off some of the more aggressive rate-cut expectations. Shifting to quality value makes a lot of sense given the current climate; $BDL could be an interesting one to watch.

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