A “Heads Up” from Sam Stovall

hank

“Deterioration in small-cap stocks has been documented for months, and now that weakness has spread to their mid-cap cousins … Both mid- and small-caps had been lagging large-caps from a price perspective, as seen in the relative performance charts for the S&P 400 Mid-Cap Index and the S&P 600 Small-Cap Index …

“Small-caps have weakened significantly since July, followed by mid-caps dating from late November. Typically, deteriorating health begins with small-caps and spreads to take mid-caps and finally large-caps. When the latter falls, the market usually can no longer resist the sellers. For now, elevated caution remains warranted.”

—SAM STOVALL (CFRA Research)

Excerpted from: Barron’s (print edition) February 14, 2022

MikeW

Thanks Hank. A good interview also with Ed Yardeni on Wealthtrack who is alot more positive. Richard Bernstein is more middle of the road and favors energy and consumer staples. Always good to see different opinions

Crash

Sam Stovall is an old stalwart. I've not seen his name in quite a while. Is that the old man you're quoting, or the next generation, @hank?

yogibearbull

"Old" Sam Stovall may be in late-60s. He used to be at S&P but then in 2016 S&P spun off its equity research unit to CFRA. His father Robert Stovall, a well-known Wall Street analyst, passed away in 2020.

Son/Sam Stovall https://www.linkedin.com/in/sam-stovall-34153988#:~:text=Sam is the author of,flagship weekly newsletter The Outlook.

Father/Robert Stovall https://www.legacy.com/us/obituaries/nytimes/name/robert-stovall-obituary?id=12891994

Crash

@yogibearbull. thanks for clarification. I had ROBERT "Bob" in mind, there.