This group of stocks is flashing a warning sign — ignore it at your 'peril,' says expert

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This area of the market is flashing a warning sign — ignore it at your 'peril,' says expert (via TradingNation)

signaled a rate cut may be coming this month, the Russell 2000 hasn't hit a new high since last August. It's currently trading about 10% below its peak.argues that investors should take note of the Russell's slowdown since in multiple instances over the past four decades it's been a precursor for problems in the broader market.

He also warned that the current economic backdrop of slowing growth and domestic earnings estimates coming down are additional headwinds that small-cap companies must face. Chad Morganlander of Washington Crossing Advisors said he remains "underweight small caps at this point" since he anticipates they will continue to underperform over the next 12 months.

 

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TradingNation My biggest question today is how the Epstein case will affect the market? Are the slug club members (the ”men” that participated in child rape) going to be cashing out to prepare for legal defense? Will organizations need to restructure? It will be interesting to see the impact.

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