Not a junk rally:' How to trade the strongest small-cap stock market in three decades

Small-cap rally strength is back in focus as State Street Investment Management argues there is “more juice” left in the market, not just a short-squeeze rebound. Matt Bartolini, the firm’s global head of research strategists, told CNBC’s ETF Edge that more Wall Street firms are upgrading small-cap earnings expectations than cutting them, supporting higher EPS estimates. He said the current quarter is likely to show over 20% EPS growth, citing strong relative momentum and the “depth and breadth” of the small-cap complex. Bartolini noted that all 11 small-cap GICS sectors are outperforming their large-cap peers, a pattern not seen in over 30 years. State Street ETFs SPSM and SLYG are up more than 20% this year, versus SPSM down about 2% and SLYG up 0.86% over the same period last year.