Fed "recalibrate" easing cycle = investors to "recalibrate" and embrace small-caps

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This is day two since the Fed initiated a rate cutting cycle, and markets are reacting positively. Most notably, small-caps ($IWM) are leading gains, even as markets have seen a broad-based rally. This is consistent with our thesis that small-caps would lead post-Fed easing and this note is focused on why this small-cap strength could be the start of a multi-year cycle of small-cap outperformance.

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