In this week’s episode of Tape Talk, Quint and Daniel discuss some of the headlines circling as the S&P 500 continues its march higher.

Repo Intervention

The Federal Reserve continues to prop up the repurchase agreement market (“repo” for short) after rates suddenly spiked higher last month in this rarely discussed corner of the market. The Fed has committed to smoothing some of the volatility in this area of the market to keep overnight lending orderly and reduce the chances off any fallout that lack of liquidity there may provide.

Trade & Hong Kong

Any developing news on the trade war between the US and China seems to be far overshadowed lately by the tensions ongoing between Hong Kong protestors and authorities. As the tensions in Hong Kong continue to escalate many investors are keeping a watchful eye on what this could mean for China’s need to use its military in an attempt to end the protests. If this happens, many will be left to wonder about the future autonomy of Hong Kong overall.

Small Caps Lag

During the recent market moves, small-cap stocks have lagged their larger stock counterparts. In fact, while the S&P 500, NASDAQ, and Dow Jones have throttled higher, the Russell 2000 small-cap index is noticeably still well under its 2018 high. Quint and Daniel review a few of the reasons these indices have taken different paths of the past few months and what that could mean to investors going forward.