Chris Towle, CEO an Investment Team Manager for Towle & Company, joins Remy Blaire for a deep dive into market dynamics of the ongoing dominance of large-cap growth stocks, especially those leading the charge in artificial intelligence. Towle examines the growing concentration of market capitalization among top-performing names and draws insightful comparisons to the dot-com era.
Turning to small caps, Towle highlights overlooked opportunities in economically sensitive sectors like trucking and housing, which have faced headwinds from a rolling recession. Towle also outlines why small-cap value stocks may now be positioned for a rebound, given their current dislocation and lack of investor attention.
Looking ahead, Towle discusses the broader macro backdrop, including expectations for Federal Reserve rate cuts and the possibility of a stimulus-fueled capital cycle. Towle also suggests that smaller companies capable of effectively leveraging AI could be the biggest beneficiaries of the next market phase.