The Old Playbook Doesn’t Work Anymore

Yields hit 5%, but the old playbook no longer applies. This month we explain why rising rates now hurt small caps instead of helping them, why a 60/40 portfolio built on the S&P 500 is likely to disappoint (and what to hold instead), and why bank stocks and our new Exuberance Index are both flashing caution. We also look at what this bull market would have been without AI, sort the Financials winners and losers after a yield spike, and walk through October’s sharp rotation out of AI-buildout names into defensives.