Small caps are finally rewarding discipline.
Profitable Russell 2000 companies are crushing their unprofitable peers this year—a complete reversal from last year's speculative frenzy. When the tide goes out, you see who's been swimming naked. Markets eventually remember that earnings matter.
This isn't just a data point. It's a behavioral shift. Last year, hope and narrative carried the day. This year, cash flow and real business models are back in style. The cycle always turns, and it always humbles those who forget the basics.
Small-cap investors who stayed patient with quality are finally getting paid. Those who chased momentum and story stocks? Different story.
Profitable Russell 2000 companies are crushing their unprofitable peers this year—a complete reversal from last year's speculative frenzy. When the tide goes out, you see who's been swimming naked. Markets eventually remember that earnings matter.
This isn't just a data point. It's a behavioral shift. Last year, hope and narrative carried the day. This year, cash flow and real business models are back in style. The cycle always turns, and it always humbles those who forget the basics.
Small-cap investors who stayed patient with quality are finally getting paid. Those who chased momentum and story stocks? Different story.
