It's going to be two steps forward, three steps back, one step forward, two steps back. It's going to be painful for investors that think it's just going to be straight up into the right on the markets. It's not going to happen. We're going to have some struggles and some volatility along the way. While she advocates for participation in tech winners, her core message is that the monetization phase will be 'prickly' and not a straight line up, characterized by volatility and setbacks.

Small caps, they've even done so great this year, but they certainly turned positive as the Fed went accommodative last week. So obviously, 2026, if we do have a very accommodative Fed, that could be a great year for small caps. Her positive outlook for small caps (RUT proxy) is conditional on the Fed remaining accommodative, framing it as a potential rather than a certainty.

Her thesis is that the Fed is divided but already accommodative (QE, dovish). She highlights labor weakness (Powell's view of overstated jobs) as a reason for the Fed to be 'more dovish.' A dovish Fed leaning towards cuts or maintaining accommodation suggests downward pressure on yields, not up.