Bloomberg Intelligence's 'Equity Market Minute' 6/19/2019

The video discusses the growing valuation gap between smallcap and large cap stocks in the US market, highlighting the role of the Fed and financial sector in this dynamic. It explores the need for yield curve spread widening and stabilization in the high yield market to improve smallcap outlook. The correlation between the Russell 2000 index and high yield bond spreads is examined, emphasizing the impact of financing conditions on smallcap performance.

What role does the Federal Reserve play in the context of small cap stock performance?

What conditions are necessary for small caps to improve their performance according to the text?