Inside Markets — Easing Cycle

The RTY should outperform in a declining rate environment as small cap companies tend to utilize floating rate debt. A prolonged easing cycle should also result in some amount of cyclical acceleration/recover. And the two biggest sector weights in the RTY are cyclical groups with Financials and Industrials comprising ~38% of the index, while Tech only accounts for ~13%. %.  Cyclical stocks could also see a disproportionate benefit from the increase in interest deductibility in the OBBB.  This all comes at a time when financial conditions remain easy, fiscal support remains strong, and deregulation is spreading across multiple industries.