SlateStone Wealth’s Chief Equity Strategist, Erin Gibbs, joined Schwab Network to preview this week’s Fed meeting and share her outlook on small-cap stocks.
Erin expects the Fed to deliver a 25-basis point cut but emphasized that the real opportunity for investors comes when cumulative cuts reach 200 basis points. Historically, small- and mid-cap stocks have outperformed by roughly 8% in the six months following that threshold. With valuations still compressed and concentration risk high in large caps, Erin sees this as a compelling setup for 2025 positioning.
Watch the full segment here.