Why the Rotation? QQQ to IWM

And how does it end?

The IWM trailed the QQQ at one point this year by almost 20% points of relative performance. As of Friday, they are nearly matched with the NDX up 10.17% and the Russell 2000 up 9.09%. The prevailing narrative is rate cuts will cause outperformance to continue. Remember, at one point, the market expected seven cuts in 2024. Now, the market sees two …