🔥INCREDIBLE🔥
💥Capital flows to stocks in the U.S. are reaching historic levels, but there is something STRIKING
💡A divergence between large and small stocks could predict MORE RISES in ALTCOINS. Let me explain why:
🔹RECORD capital inflow to LARGE CAP stocks
▪️Investors placed +$14.000 BILLION in large stocks last week
▪️With this, large cap funds project +$419.000M in annual inflows
▪️This is the SECOND year with the most inflows in history
▪️This represents a clear preference for assets perceived as safer, in an still uncertain environment
🔹SMALL CAPS also received money, but...
▪️They had +$4.500 million in the week
▪️However, they are still on track to close the year with -$80.000 BILLION in net outflows
▪️It would be the YEAR WITH THE LARGEST OUTFLOW in history for small caps
🧠What does this divergence mean⁉️
👉Investors are overweighting large companies
👉But historically, when rates drop, capital rotates to small caps because:
🔸They are more sensitive to monetary policy
🔸They benefit faster from cheap credit
🔸They are more correlated with local consumption
🔸They benefit when there is more appetite for risk
🔹BARCLAYS states clearly: "Rate cuts will especially benefit small caps"
🔹And as we saw in a previous analysis, altcoins follow the behavior of small caps → this could anticipate an altseason if the rotation accelerates
📍History shows that small caps often lead the increases post-cuts.
Do you think we are on the brink of a rotation towards small caps and altcoins⁉️
Source: Barclay, Bank of America