The first significant event in the 3rd quarter equity market was The Great Rotation. After many years of underperformance, starting around July 10, small cap value stocks started to significantly outperform large cap growth stocks. By many metrics, this sort of outperformance hasn’t been seen since 2000 & 2001.
Small cap stocks started to outperform large cap stocks in April 1999 in a cycle which lasted for 15 years. Value stocks started to outperform growth stocks in March 2000 in a cycle which lasted about 7 years…