Carlisle Reports Small and Midcap Value Stocks at Maximum Pessimism

What was said

"I think that when a lot of the market moves towards one narrative, which is the AI narrative, and to some lesser extent specifically for this stock, the GLP-1 narrative that it does seem to pull money away from the part of the market that hasn't done anything, and it creates this little air pocket."

Tobias Carlisle stated that forward returns for small and micro-cap value stocks now look as compelling as any time since he began managing funds, as capital has flooded into AI stocks. He described current valuations as presenting a decision point where small-cap stocks must either catch up soon or face continued underperformance, with BellRing Brands collapsing from $27 to $8 exemplifying the sector distress.