Part 4/8:
Turning their attention to small cap stocks, particularly the Russell 2000, Elizabeth points out that these stocks are often seen as indicators of broader market trends. As small caps currently fall into technical correction territory, they offer insights into investor sentiment and economic conditions. Elizabeth explains that small caps are sensitive to economic shifts and rising rates, which has led to significant downward moves recently. The duo discusses the importance of observing sectors like industrials and financials for a comprehensive understanding of market trends.