{"id":290150,"date":"2025-11-18T02:37:09","date_gmt":"2025-11-18T02:37:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/290150\/"},"modified":"2025-11-18T02:37:09","modified_gmt":"2025-11-18T02:37:09","slug":"small-caps-can-be-a-hedge-against-ai-mania-tradingview-news","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/290150\/","title":{"rendered":"Small caps can be a hedge against AI mania \u2014 TradingView News"},"content":{"rendered":"<p class=\"\">SMALL CAPS CAN BE A HEDGE AGAINST AI MANIA<\/p>\n<p class=\"\">Small cap stocks are a possible hedge against the optimism over artificial intelligence that has underpinned recent market performance, Talley Leger, chief market strategist at The Wealth Consulting Group, told Reuters in an interview.<\/p>\n<p class=\"\">Unlike in recent times, small cap stocks are trading at a large discount compared to their larger cap counterparts, putting them in position for significant gains in the near term, Leger says.<\/p>\n<p class=\"\">The S&amp;P 600 small cap index (.SPCY) is down 0.4% this year compared with the S&amp;P 500 <a href=\"https:\/\/www.tradingview.com\/symbols\/SP-SPX\/\" class=\"container-ekXxv5Y5 symbolTag-cwMMKgmm tag-zVPYJd3B xsmall-zVPYJd3B interactive-zVPYJd3B apply-overflow-tooltip apply-overflow-tooltip--allow-text apply-overflow-tooltip--check-children\" rel=\"nofollow noopener\" target=\"_blank\"><img decoding=\"async\" class=\"logo-PsAlMQQF xxxsmall-PsAlMQQF wrapper-TJ9ObuLF skeleton-PsAlMQQF\" crossorigin=\"\" src=\"https:\/\/s3-symbol-logo.tradingview.com\/indices\/s-and-p-500.svg\" alt=\"\"\/>SPX<\/a>, which is up 13.5% in the same period.<\/p>\n<p class=\"\">&#8220;The space has been underperforming for a good 14 years so the valuations are exceptionally attractive,&#8221; Leger says. &#8220;But that&#8217;s not enough,&#8221; he adds.<\/p>\n<p class=\"\">The earnings of small cap companies are expected to grow faster next year as interest rates are in a downward trend while strong growth in large cap earnings is also expected to normalize, Leger says.<\/p>\n<p class=\"\">The &#8220;risk premium&#8221; in small caps is also healthy while market volatility and investor fear have declined.<\/p>\n<p class=\"\">&#8220;The smaller cohort of the equity market isn&#8217;t known for its stability and consistency of earnings but the low base effects are very powerful coming off a bottom,&#8221; Leger says. &#8220;So it can produce extremely rapid growth rates.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"SMALL CAPS CAN BE A HEDGE AGAINST AI MANIA Small cap stocks are a possible hedge against the&hellip;\n","protected":false},"author":2,"featured_media":281707,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[62,276,277,49,48,61],"class_list":["post-290150","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-ca","tag-canada","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/290150","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=290150"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/290150\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/281707"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=290150"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=290150"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=290150"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}