Business Cycle May Trump Politics

This podcast episode delves into the recent rally in small-cap stocks and pro-cyclical trades influenced by Donald Trump's political prospects, with Mike Wilson arguing that economic cycles, rather than political leadership, are more critical drivers of market performance. He contrasts the current late-cycle environment with that of 2016, highlighting the shortcomings of small-cap cyclicals today and urging a cautious approach focused on large-cap stocks while monitoring economic indicators.