1Over the past three years, small cap growth stocks have had a -72% correlation to the yield of the U.S. 2-year treasury note, while large cap stocks have had only a 11% correlation, as of May 2024.
2The Federal Reserve’s March 20, 2024, Summary of Economic Projections shows a “longer run” Fed Funds rate of 2.60% as opposed to 5.25-5.50% in May 2024.
3As of 12/31/23, consensus cumulative EPS growth for the Russell 2000 Growth Index is estimated to grow 92% through 2026, while the S&P 500 is estimated to grow 41%.
Correlation is a statistical measure that shows how two variables are related to each other. If two variables are correlated, it means that they tend to move together in some way.
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Earnings per share (EPS) is the portion of a company's earnings or profit allocated to each share of common stock.
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