Small-Cap Underperformance Is Worth Watching, Headwaters Volatility's Rowe Says

The video features a discussion with Matrouh from Headwaters Volatility about the impact of the Fed's accommodative policy on market rallies, particularly the divergence between large cap and small cap stocks. The conversation highlights the underperformance of growth companies in the Russell 2000 compared to large caps and the S&P. It also explores the current state of market volatility, opportunities for buying volatility cheaply, and strategies for managing volatility risk. The discussion concludes with insights into the future outlook for volatility and macro markets.

What has been the impact of the Federal Reserve's accommodative policies on the market?

• It has resulted in a stable market environment.

• It has caused a decrease in market volatility.

• It has fueled a market rally.

• It has led to a decline in stock prices.

Which index is mentioned as underperforming compared to large-cap stocks?

• Nasdaq Composite

• FTSE 100

• Dow Jones Industrial Average

• Russell 2000

What is a key strategy discussed for managing volatility?

• Making short-term bets

• Dynamically managing positions

• Avoiding volatility altogether

• Buying and holding indefinitely

Which index is noted for spiking higher in the discussion?

• Nikkei 225

• VIX

• MOVE index

• DAX

What is the main challenge for investors regarding short volatility positions?

• Managing the risk effectively

• Finding the right stocks to invest in

• Understanding market trends

• Predicting interest rate changes