In a recent interview on CNBC, Bill Miller, chairman of Miller Value Partners, expressed his expectations for the recovery of small-cap stocks and outlined the inflation scenario.
Outlook for Small-Cap Stocks
Bill Miller expressed optimism about small-cap stocks. "From our perspective, you want to actually own small caps cyclicals and you want to be very aggressive here," he noted. Miller highlighted the recent broader market rally, especially among smaller companies. He cited the Russell 2000 index, where 90% of stocks were up last week.
Control over Inflation
According to Miller, inflation is now under control and policymakers are being encouraged to ease their measures. "The bond market currently expects 2.6% annualized inflation over the next two years. Very manageable," he said, adding that the current economic environment could resemble the period from 2000 to 2006.
Impact on Cryptocurrencies
Earlier this week, Bitcoin dipped below the $113,000 level, reaching an intraday low of $112,353. This decline occurred alongside a fall in the Nasdaq 100 index, where there is an ongoing rotation out of big tech. Currently, Bitcoin is trading above the $114,000 level.
Bill Miller emphasizes the importance of small companies in the current market conditions and expresses confidence in inflation control. His insights could influence investors' strategies in the coming months.
