
Charles Payne and Erin Gibbs analyze the S&P 600 Small Cap Index, noting its recent clean breakout and strong performance. Erin explains that 2026 earnings estimates show small and mid-caps are expected to outgrow large caps. She also discusses the 'New Fed' being flexible, political, and growth-friendly, suggesting this approach, even with stable rates or quantitative tightening, will ultimately lead to lower inflation and more rate cuts, further benefiting small caps.