Why the ‘Rolling Recovery’ Has Already Begun

In this episode of Thoughts on the Market, Mike Wilson and his colleague Andrew Pauker address client questions regarding their views on the economy and equity market. They discuss the transition from a rolling recession to a rolling recovery, the implications of the Fed's rate cuts, and the potential benefits of accelerating inflation for equities. They explore the labor cycle, earnings recession, and the significance of "Liberation Day" as the end of the rolling recession. The conversation also covers the dynamics of the yield curve, the performance of small-cap stocks, and the signposts for a long small-cap trade, providing insights into market rotations and investment strategies.