Morgan Stanley's Wilson Sees Small Caps Fading After Russell Rebalance

The video discusses the performance of small caps in the context of trade tensions and tax cuts, highlighting their relative earnings growth. It examines the impact of tariffs and the nervousness in tech stocks, particularly focusing on discretionary stocks like Netflix and Amazon. The discussion shifts to defensive market rotations, emphasizing utilities and economic indicators like treasury yields and Fed policy.

How do tax cuts affect small caps compared to large caps according to the speaker?

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What is the significance of the Russell rebalance mentioned in the discussion?

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What are the main drivers of relative earnings growth mentioned in the text?

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What concerns does the speaker express regarding the current market conditions?

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What are the three factors that the speaker believes will lead to a more aggressive defensive rotation in the market?

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