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How TINA Has Turned Large Cap Stocks Into Stars As Clouds Darken

How TINA Has Turned Large Cap Stocks Into Stars As Clouds Darken

The large capitalization S&P 500 Index (SPX) has soared to new record highs, up by 7.0% for the month through the close on June 24, while the small cap Russell 2000 Index has advanced by 4.4%. The buying action in stocks reflects a resurgence in TINA, the view that "There Is No Alternative (To Stocks)" given that the yield on the 10-Year U.S. Treasury Note has dipped below 2% and the futures market is forecasting at least two more interest rate cuts by the Federal Reserve in 2019, per a column in The Wall Street Journal. From the close on June 22, 2018 through the close on June 24, 2019, the S&P 500 has gained 7.3%, while the Russell 2000 has fallen by 9.2% of its value and the iShares Microcap ETF (IWC) has plummeted 16.6%.