Earnings Growth and Valuation Gaps Fuel the Small Cap Rally

Elena Khoziaeva makes the case for diversification across both geography and market cap, highlighting global and emerging markets along with small caps as key levers. She points to Russell 2000 earnings growth far exceeding expectations and a persistent valuation gap between small and large caps as evidence the small cap rally can be sustainable. Khoziaeva also favors market neutral strategies as a low-volatility alternative to fixed income amid rising rates.

Morning Trade Live

21 Sep 2026

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