Is It Time for Small Caps to Shine?

[ETF Daily News]( December 8th, 2023 SPONSOR [Read Immediately: Huge banking overhaul underway]( The financial community has some big changes planned for your money. The Federal Reserve, US Treasury and White House are all involved... as are at least 41 American banks and credit unions. This overhaul could change how you cash your paycheck... access your social security income... even how you pay your taxes. That's why it's crucial you understand what's going on before your bank is affected. [Full story here.]( [Is It Time for Small Caps to Shine?]( The S&P 500 ([SPY]( – [Get Rating]( bounced an impressive +8.92% in November. And now stocks are pressing up against the highs of the year looking ready for more. At this stage the pace of gains will slow. Probably more of a melt up scenario for stocks given the bullish bias of the holiday season. Meaning this is the stage that investors will be more discerning about what they buy instead of everything bouncing from bottom. And that is the stage that favors quality and value…the exact kinds of stocks we place in our portfolio. Market Commentary As noted in [my article from earlier in the week]( we have a bull market til proven otherwise. The only thing to be on guard about is signs of economic weakness that increase the odds of recession. Gladly right now things are looking pretty solid on that front with a +2.1% GDP estimate from the coveted GDPNow. Helping to potentially improve that picture is that Chicago PMI (focused on manufacturing) came in Thursday at a surprisingly strong 55.8 versus an abysmal 44.0 last month. Chicago PMI is not typically a market moving event. But insiders know that it is the best leading indicator of what shows up in the vital national report, ISM Manufacturing which comes out Friday morning. This bodes well for an improvement in this sector that is beneficial to the overall economy. Looking ahead investors should be watchful for these other key reports: 12/5 ISM Services- this has been the healthier part of the economy leading to solid GDP readings of the past. In general, when employment is solid, and consumers have money in their wallets…they will spend it pushing our economy forward. 12/8 Government Employment Situation- Monthly jobs adds have been easing, and more importantly, wage inflation has slowed. Keeping on that track is a goldilocks reading for this economic report. 12/12 CPI & 12/13 PPI- These key inflation reports have been trending nicely lower for several months which is a big part of the bull market returning in 2023. The better this looks…the sooner the Fed considers lowering rates in 2024…the faster the economy will grow…the higher… Continue reading at [STOCKNEWS.com]( NOTE: If URLs do not appear as live links in your e-mail program, please cut and paste the full URL into the location or address field of your browser. [Privacy Policy]( | [Terms & Conditions]( This email contains a paid advertisement.This is not a solicitation for the purchase or sale of securities. Readers are encouraged to conduct their own research and due diligence, and/or obtain professional advice, prior to making any investment decision. Advertisements and sponsorships are provided as a service to Stock News users. Stock News is not responsible for their content, services or products. The statements and opinions contained in this advertisement are not those of Stock News, and Stock News disclaims any liability for or arising from such statements and opinions. You are hereby advised that Stock News is receiving a fee as compensation for the distribution of this advertisement. [Click here to unsubscribe]( Copyright © 2023 ETF Daily News, part of StockNews.com - POWR Stock Rating, Market Outlook & Investment Insights Magnifi Communities, 1 Penn Plaza, Suite 3910, New York, NY 10019