Bond Vigilantes Are Watching Many Countries: Seema Shah

The video discusses investment strategies focusing on European bonds and American exceptionalism, highlighting the potential for rate cuts by the ECB compared to the Fed. It emphasizes the importance of monitoring budget deficits and the influence of bond vigilantes, particularly in countries like France and the UK. The discussion also covers the performance and valuation of small caps, noting their exposure to floating rate debt and the impact of inflation concerns.

In what ways do small caps differ from large caps in terms of exposure to economic changes?

What are the potential risks for small caps if significant rate cuts do not occur next year?