Small-Cap and Value Stocks Shine as Investors Bet on Broad Economic Strength
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Small-cap stocks led the market higher, signaling investor confidence in the economy's resilience as the Fed debates policy.
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The "Magnificent 7" tech stocks are seen as overcrowded, while the equal-weighted S&P 500 offers opportunities at a lower valuation.
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A bullish technical indicator called the "Turn-Of-Year Barometer" gave a buy signal, predicting a 94.5% chance of market gains this year.
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Breadth has improved with more stocks participating, not just the largest tech names.
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The author remains confident of higher highs this year after a near-term pause or pullback.