Wait for Fed rate cut before buying small caps: Strategist

Savita Subramanian News

Wait for Fed rate cut before buying small caps: Strategist
Russell 2000Market Domination
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Major indexes (^DJI, ^IXIC, ^GSPC) are trading mixed as markets rebound from a tech sell-off. However, small-cap stocks have shown some strength in recent...

However, small-cap stocks have shown some strength in recent days. Savita Subramanian , BofA Securities Head of U.S. equity strategy & U.S. quantitative strategy, joins Market Domination to discuss the small-cap trend.) is"cheap and looks like it could do well," but there's a problem: many companies in the index aren't likely to grow.

So the problem is that a lot of small companies are former, old, uh, former large cap companies that drifted into the Russell over the last couple of years because they can't hack higher interest rates.Unless we start to see the, that really tell us short rates are at peak levels, we are going to cut.

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