Ep. 58 - When the Fed Cuts Rates Buy Small-Cap Stocks

Jul 24, 2025

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Extreme capitulation breeds extreme rallies.

We are in the midst of a powerful broadening boom.

And one area is set to thrive further.

When the Fed cuts rates, buy small-cap stocks.

Back in May, we pounded the table that breadth would expand. Post extreme outflows, smaller areas tend to thrive.

Now that we’ve been overbought for 30 sessions, we made the case to buy any summertime dip should it come.

Today we will reinforce that BTD stance with a powerful historical study.

As of this morning, the odds of a Fed interest rate cut for September stand at 66%. This is a fluid target.

Whether or not the cuts begin then or shortly after, won’t matter.

As Alec Young says, rate cuts may be delayed, but they won’t be denied. I agree! Rates are heading lower, so let’s make a plan now.

Today, we’ll run through our latest data. Then we’ll fire off a signal study…and of course layout stocks to play the rate cut induced equity rally.

Remember none of this is personal advice of any kind. This is for entertainment and informational purposes only.