Potential for More Gains in the New Year

  • Small-cap stocks nearing a ‘golden cross’ on price charts
  • Potential for more gains in the new year
  • Russell 2000 and European small-caps showing strong performance
  • 50-day moving average approaching 200-day moving average
  • Positive shift in long-term trend expected
  • Struggling sectors benefiting from rate-cut hopes
  • Speculative frenzy driving gains in small-caps and unprofitable tech

Small-cap stocks in both Europe and the U.S. are on the verge of a ‘golden cross’ on the price charts, indicating the potential for more gains in the new year. The Russell 2000, a benchmark index for U.S.-traded small-caps, is approaching a golden cross as its 50-day moving average nears its 200-day moving average. European small-caps are also showing strong performance. The recent rally in small-caps is attributed to expectations of interest rate cuts by the Federal Reserve and hopes for a ‘soft landing’ for the U.S. economy. Some analysts view the gains as part of a speculative frenzy driven by rate-cut hopes.

Public Companies: Russell 2000 (RUT), iShares MSCI European Small-Cap ETF (IEUS), ARK Innovation ETF (ARKK), Nasdaq-100 (NDX)
Private Companies:
Key People: analysts from Renaissance Macro (unknown)

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Factuality Level: 7
Justification: The article provides information about the potential ‘golden cross’ on small-cap stocks in Europe and the U.S. It includes data from FactSet and quotes from analysts at Renaissance Macro. However, it also includes some speculative language and mentions a ‘dash for trash’ without providing a balanced perspective.

Noise Level: 7
Justification: The article provides some analysis of small-cap stocks and their potential for gains in the new year. However, it also includes some irrelevant information about text-to-speech technology and unrelated ETFs. The article lacks scientific rigor and does not provide actionable insights or solutions.

Financial Relevance: Yes
Financial Markets Impacted: Small-cap stocks in Europe and the U.S.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the potential for small-cap stocks in Europe and the U.S. to experience a ‘golden cross’ on the price charts, which could indicate further gains in the new year. There is no mention of any extreme events or their impact.

Reported publicly: www.marketwatch.com