Why small caps, cyclicals are 'an exciting opportunity'

Wall Street is growing increasingly bullish on the S&P 500 (^GSPC), with analysts at Evercore ISI and Goldman Sachs boosting their 2024 year-end targets for the index. Great Hill Capital Chairman and Managing Member Thomas Hayes joins Wealth! to discuss how investors should position themselves in this market environment.
Hayes notes that current economic conditions suggest a Federal Reserve rate cut could occur in 2024. With the recent rally primarily concentrated in the tech sector, Hayes believes this could spark a broader rally, benefiting companies "that have kind of been left behind," allowing them to outperform and boost the S&P 500 index. He advises investors to consider small-cap stocks, cyclical companies, and "anything with leverage on its balance sheet" as potential investment opportunities as markets await a Fed rate cut.
However, Hayes cautions against "chasing the shiny objects," suggesting that names like Nvidia (NVDA), which have experienced substantial growth, may struggle to sustain their current momentum.
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