Nearly every sector in small caps expected to show improved earnings, says strategist
December 18, 2025 • 2m 29s
Kelly Evans (Anchor)
00:00.110
tech
is
back
in
the
leadership
position
today
big
tech
but
small
caps
lately
have
been
the
ones
putting
up
some
big
gains
the
russell
two
thousand
outperforming
the
mag
seven
over
the
past
month
and
my
next
next
guest
thinks
that
will
continue
says
the
trade
has
legs
next
year
Kelly Evans (Anchor)
00:14.230
but
expects
the
leadership
to
change
julie
beal
is
chief
market
strategist
at
kane
anderson
rudnick
julie
welcome
and
what
do
you
think
is
about
to
take
place
Julie Biel (Chief Market Strategist)
00:22.830
well
i
think
that
what's
going
to
really
start
to
happen
is
people
are
going
to
recognize
that
earnings
growth
is
what
really
matters
and
a
lot
of
what's
been
doing
great
in
the
russell
has
been
quantum
computing
which
doesn't
have
earnings
biotech
companies
which
don't
have
Julie Biel (Chief Market Strategist)
00:35.350
earnings
and
you
know
companies
with
high
levels
of
debt
and
i
think
there
will
be
some
recognition
that
growth
is
going
to
accelerate
in
small
cap
but
among
the
higher
quality
businesses
that
have
really
figured
out
how
to
resolve
inflation
labor
headwinds
higher
interest
rate
Julie Biel (Chief Market Strategist)
00:50.590
costs
i
think
those
are
the
ones
that
are
going
to
do
better
and
i
think
that
if
you
really
study
a
little
bit
of
the
idiosyncratic
qualities
of
all
of
them
you
can
find
some
really
nice
gems
and
they're
trading
at
better
valuations
too
Kelly Evans (Anchor)
01:02.310
a
lot
of
people
have
pointed
this
out
that
even
when
we're
talking
about
the
small
cap
rally
they've
called
it
i
don't
want
to
see
the
trash
but
like
the
low
quality
stuff
why
is
that
is
that
because
that
also
could
be
where
the
growth
is
Julie Biel (Chief Market Strategist)
01:14.870
i
i
think
a
lot
of
it
is
just
it's
pure
speculation
and
a
lot
of
it
has
been
driven
by
retail
traders
right
so
a
good
chunk
of
it
is
actually
happening
in
retail
something
like
thirty
percent
of
volume
is
in
stocks
that
are
less
than
five
dollars
so
it
really
kind
of
points
to
Julie Biel (Chief Market Strategist)
01:30.350
you
know
what
you
would
call
lower
quality
and
i
think
it's
a
recognition
of
a
lot
of
young
people
really
trying
to
try
to
get
rich
quick
on
some
very
speculative
parts
of
the
low
cap
low
lower
quality
market
so
to
me
it's
just
this
opportunity
to
look
at
the
higher
quality
Julie Biel (Chief Market Strategist)
01:46.990
businesses
that
still
haven't
gotten
the
shine
on
them
the
way
that
low
quality
has
for
instance
Kelly Evans (Anchor)
01:51.510
elle
matt
is
one
of
your
picks
down
six
percent
this
year
encinos
down
twenty
three
percent
you
love
it
Julie Biel (Chief Market Strategist)
01:57.190
i
do
i
i
think
both
of
these
businesses
are
really
differentiated
lemaitre
is
a
business
that
is
in
healthcare
but
it
really
doesn't
face
a
lot
of
the
same
regulatory
pressures
and
pricing
pressures
it's
actually
been
able
to
find
a
lot
of
pricing
growth
and
strengthen
its
Julie Biel (Chief Market Strategist)
02:10.310
business
and
encino
you
know
nothing
in
software
has
done
really
well
because
everyone
is
just
assuming
that
we're
rip
and
replacing
and
vibe
coding
and
i
actually
think
a
lot
of
these
vertical
saas
software
companies
are
the
ones
who
are
going
to
be
able
to
leverage
a
lot
of
Julie Biel (Chief Market Strategist)
02:23.470
the
AI
and
sell
it
to
their
customers
they
have
the
ships
encino
is
really
well
positioned
to
do
that
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