Small Caps Are 'Outperforming Everything,' Analyst Says: This Rally's Been 'Years In The Making'
Portfolio Pulse from Neil Dennis
Craig Johnson, a market technician at Piper Sandler, predicts small-cap stocks will continue to outperform larger caps through 2024. The Russell 2000 index, tracked by the iShares Russell 2000 ETF (IWM), has seen a significant rise following the Federal Reserve meeting, with expectations of interest rate cuts in 2024. Johnson anticipates the Russell 2000 to break through resistance levels and push higher. However, potential risks include the 2023 U.S. presidential election and geopolitical tensions. Larger cap stocks are expected to enter a high-level trading range for much of 2024.
December 19, 2023 | 8:05 pm
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POSITIVE IMPACT
The iShares Russell 2000 ETF (IWM) is expected to benefit from the anticipated outperformance of small-cap stocks and potential interest rate cuts in 2024, as predicted by Craig Johnson.
The iShares Russell 2000 ETF (IWM) directly tracks the performance of the Russell 2000 index, which is expected to outperform according to the analyst. With the anticipation of interest rate cuts, small-cap stocks, and consequently IWM, are likely to see increased investor interest and potential price appreciation. The score reflects the positive outlook, with high relevance due to the direct tracking of the index by IWM. Importance is high as the performance of IWM is closely tied to the Russell 2000's movements. Confidence is moderately high, based on the analyst's predictions and recent market trends.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90