Kyle C. Garrison

The recent rally in small-cap stocks has sparked debate among market experts. While some see it as a simple diversification move by investors looking to spread risk across asset classes, others believe it could signal a more sustained shift in market sentiment. ETF reporter Dave Nadig suggests that the influx of money into small caps is part of a broader trend toward portfolio diversification. As investors navigate an uncertain economic and political landscape, they are increasingly looking to reduce concentration risk. The upcoming presidential election has further amplified this trend, with investors looking to protect their portfolios from potential volatility.…

Federal Reserve Chairman Jerome Powell announced Monday that the central bank does not plan to wait for inflation to hit 2% before cutting interest rates. In a speech at the Economic Club of Washington, D.C., Powell noted that central bank policies have “long and variable lags,” justifying why the Fed will not delay action until it reaches its target. “If you’re waiting for inflation to hit 2%, you’ve probably waited too long, as the current tightening could push inflation below that threshold,” Powell said. Instead, the Fed is aiming for “greater confidence” that inflation will return to 2%, he added.…