As small caps have underperformed for the better part of a decade, Bill Baruch shares his thoughts on the asset class and whether smaller firms might start catching up to megacap tech.

Transcript:

The method to the number, is that right? Small caps are going to lead the way next year? Yeah, I like to under-promise, maybe over-deliver. 5,100, we could exceed that. I think small caps can lead. I like that quite a bit. IJR, that S&P 600, I mean, that could go to 130. I mean, I think that’s 25% gain or so. That really leads. The pace in which interest rates come down could be a tailwind. But if interest rates aren’t coming down as much as expected, the tailwind will be actually steady growth. And I think inflation, the trajectory of inflation stays down. So I think we’re in a sort of Goldilocks environment next year, and in an election year as well. So Josh Brown, as I said…