IWM Jan 2025 185.000 call
- Yahoo Finance Video
How to play small-cap stocks: Ollie’s and RXO
Josh Bennett, senior portfolio manager and director of research at Alger, joins Julie Hyman and Josh Lipton on Market Domination to discuss how to play small-cap stocks during the rate-cutting cycle. “We think the setup is pretty good for small caps now… The fact is, as the easing cycle begins, we should see that as favorable for small caps,” Bennett says, adding, “Historically, you've seen small caps trade at about a 10% premium to the large-cap index.” He highlights that “small caps just off 20-year lows in terms of relative valuation to large-cap stocks. So valuation setup is interesting.” The portfolio manager says that while it does look like the economy is on the way to a soft landing if we were to enter a recessionary period, there are small stocks that can weather a challenging macro. “Small is not weak. And I think that it's interesting. A lot of people think that small-cap companies don't have the strength, but when you look at where we operate in the small-cap segment, we're looking for the highest quality small-cap growth names that we can find.” Bennett names Ollies, a closeout retailer, as a buy in the small-cap space. “They're the largest player in the closeout industry. This is an enormous industry. $300 billion in closeout, and over $200 billion of that is non-apparel, which is where Ollie's plays. So they don't compete with TJX. They don't compete with Marshall's… Why is Ollie's a buy now? Because the consumer is looking for value more than they ever have before.” The portfolio manager also calls on RXO, a truck brokerage company that uses artificial intelligence (AI) to optimize its network, which connects trucks with companies that need to move things. “RXO should benefit as the industrial cycle begins to pick up. They'll see that benefit.” Bennett notes that if there are supply chain disruptions from the potential port strike, RXO could gain. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Naomi Buchanan.
- Yahoo Finance Video
Great investing debate: Growth or value stocks post-rate cuts?
It's an age-old question among investors: which is better, growth investing or value investing? After the Federal Reserve's interest rate cut this week kicked off a highly-anticipated easing cycle, Catalysts hosts Seana Smith and Madison Mills spoke with a panel of experts about how the two investment strategies could play out in the months to come. Vontobel portfolio manager Markus Hansen and Greenwich Wealth's CIO Vahan Janjigian join Catalysts to lay out their investment thesis. Vahan favors value over growth — but says he's not a strict value investor. "What I really favor is stocks that are undervalued," he says, "and in many cases, that can be growth stocks." In terms of investments, Vahan notes he's leaning toward traditional value stocks, like IBM (IBM), Verizon (VZ), and Pfizer (PFE). And in the wake of the Fed's latest rate cut, Vahan sees small caps (IWM) as benefitting from changes to the yield curve. "I think as things normalize, we'll get back to what's considered normal. And that means value stocks outperform growth stocks and small cap stocks outperform large cap stocks." Markus and his team at Vontobel are quality growth focused. He says post-rate cut, he expects dividends will get a lot of love from investors. That's why he's favoring "good old fashioned names" like Coca-Cola (KO), Walmart (WMT), Home Depot (HD), and PepsiCo (PEP) for their sustained dividend growth. Luxury is also a sector he finds compelling for its wide economic moat. "It requires time to build that heritage, and to be the top brand," he says, and that longevity makes companies like Hermes (RMS.PA), Ferrari (RACE), and Richemont (CFR.SW) compelling. For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Kathleen Welch
- Yahoo Finance
What investors are getting wrong about the VIX right now
The VIX is commonly known as the "Fear Gauge," or a measurement of volatility. It is, but it's a little more complicated than that. And it's good to know the difference.
