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Investopedia
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Will Rate Cuts Boost Small-Cap Stocks? Here's What Experts Say
~2.2 mins read
While market participants are anything but certain about the specifics of the Federal Reserve's decision on interest rates rate tomorrow, there is one thing they know for sure: rates are about to come down.
That conviction has boosted small-cap stocks in recent days. The Russell 2000 index was up for the fifth consecutive session on Tuesday. The small-cap benchmark has risen more than 5% in those five days, putting it ahead of the large-cap S&P 500, which has advanced about 2.5%.
Small caps' outperformance comes as investors await the Federal Reserve's first interest rate cut in more than four years. The cut, due Wednesday, is expected to be the first in a series of reductions that Wall Street thinks will lower the benchmark federal funds rate by at least a full percentage point before the end of the year.
Rate cuts are broadly supportive of stocks, as long as the economy isn’t in a recession. Small-cap stocks are thought to benefit more than their large-cap peers from monetary policy easing because they’re more likely to hold floating-rate debt. That assumption underpinned the small-cap rally that propelled the Russell 2000 more than 10% higher in July, its best month all year.
However, as analysts at Oxford Economics recently noted, small-cap performance has been mixed after previous interest rate cuts. At best, rate cuts have helped to moderate small caps’ underperformance relative to large caps in the late stages of tightening cycles.
Though, they say, this time could be different. Oxford expects small caps to be “outsized beneficiaries of the upcoming rate cuts…due to their relatively weak balance sheets.” Lower borrowing costs, easier financial conditions, and resilient consumer and business spending, they said, should alleviate some of small caps’ balance sheet pressure.
Others, however, advocate caution. Bank of America (BofA) on Monday said its "Regime Indicator," a measure of market sentiment, declined for a second consecutive month in August, indicating a general risk aversion in markets. Small-cap stocks, due to their sensitivity to economic conditions and typically weaker balance sheets, are often riskier investments than comparable large caps.
Quarterly earnings are also, according to BofA analysts, an overhang for small caps. The small-cap S&P 600, they note, may have exceeded second-quarter earnings expectations, but the group’s aggregate profits still declined 10% from a year ago. Total sales also missed estimates and the outlook for the remainder of the year was bleaker than previously forecast. That, they said, could limit near-term upside from this week’s rate cut.
BofA analysts instead recommended mid-cap stocks as a near-term hedge against market weakness. Mid caps, they said, offered better second-half earnings guidance than small caps, and tend to outperform small and large caps in the year after rate cuts.
Analysts at Goldman Sachs were similarly bullish on mid caps in a note last week. The group offered investors, they wrote, "superior earnings growth at a reasonable price compared with large-caps," and stronger income statements and balance sheets than small caps.
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Instablog9ja

Lady Raises Alarm After Her Wedding Picture, Featuring The Faces Of Nigerian Actors, Was Used In A Movie
~0.4 mins read
A Lady has raised alarm after her wedding picture, featuring the faces of Nigerian actors, was usld in a movie.
She said she was surprised to see her wedding picture in a film only that the faces of the actor and actress was plastered over their face. She has tried every means to reach out to the writer of the movie all to no avail. She is not happy at the level of unprofessionalism .
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Instablog9ja

Influencer Daniel Regha Reacts To Chidimma Adetshinas Miss Universe Nigeria 2024 Victory
~0.4 mins read
Influencer Daniel Regha has reacted to Chidimma Adetshina’s Miss Universe Nigeria 2024 victory.
He said honestly speaking, it just feels too predictable and so wrong that Chidimma who became a contestant last minute is being crowned the winner of Miss Universe Nigeria 2024. Other contestants didn’t really stand a chance the moment she entered the competition and that’s the truth.
Click to watch
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News_Naija

Job Opportunities In AI Field
~4.6 mins read
Artificial Intelligence is unlocking a wave of new career paths across industries, creating high demand for skilled professionals, JUSTICE OKAMGBA writes. The demand for AI professionals has surged in recent years and is expected to grow as AI continues transforming industries. The global AI market is projected to expand from $150 bn in 2023 to over $1.3 trn by 2030, driving increased demand for skilled workers, according to research from MarketsandMarkets. In 2023, job postings requiring AI skills rose over 200 per cent compared to 2022, with specialised fields like generative AI seeing a 450 per cent increase. Machine learning engineer PhD holder in Artificial Intelligence, Marcin Chady, described machine learning engineering as one of the most foundational roles in the field. “You basically sit in front of the computer and think long and hard about statistics and linear algebra, trying different learning models and testing them,” Chady said. Digital marketing expert Ahmad Tayyab said this role involves designing and developing machine learning models and algorithms. “It includes tasks such as data preprocessing, model training, and deployment,” he said. Data scientist The explosion of data across industries has made data science an essential part of AI development. “Data scientists use statistical methods and machine learning techniques to analyse and interpret complex data,” Tayyab said. “They help organisations make data-driven decisions.” Quora writer Adeel Ahmad also identified data science as one of the core AI jobs available. “It’s all about uncovering insights from vast datasets,” he said. AI research scientist “AI research scientists are advancing the field through experimentation and innovation,” said Tayyab. “They often work on the underlying algorithms and frameworks that power AI systems.” Ahmad noted that this role is ideal for individuals who enjoy developing cutting-edge techniques and pushing the boundaries of what AI can do. AI Engineer Combining technical implementation with software integration, the AI engineer’s job is to build functional systems. “AI engineers integrate machine learning models into real-world software and hardware solutions,” said Tayyab. “They ensure that AI capabilities are embedded in products in a scalable way.” Computer vision engineer Computer vision, which enables machines to ‘see’ and understand images and videos, is becoming increasingly important across sectors. “These engineers develop algorithms that interpret and process visual information,” said Tayyab. “From self-driving cars to medical imaging, the applications are endless.” Ahmad highlighted that engineers in this field work closely with deep learning tools to train systems that can detect, classify, and respond to visual stimuli. Natural language processing engineer Another growing area is natural language processing—enabling machines to understand and generate human language. “This includes working on tasks such as language translation, sentiment analysis, and conversational agents like chatbots,” Tayyab explained. According to Ahmad, NLP engineers focus on the human-AI language interface. “They make machines capable of understanding and communicating using human text,” he said. Robotics engineer AI’s role in robotics is giving rise to a new wave of opportunities, especially in automation and hardware integration. “Robotics engineers figure out how to apply the latest materials and electronic components to make things move and sense the environment,” said Chady. Tayyab added that these professionals build autonomous systems and design robots capable of performing complex tasks with minimal human input. AI product manager While not purely technical, the role of an AI product manager is crucial for ensuring that AI systems meet user needs. “Product managers oversee development from conception to launch,” Tayyab said. “They balance user feedback, technical limitations, and business goals.” This role is particularly important in startups and tech firms, where the line between technical and strategic work often blurs. AI ethicist With great power comes great responsibility—and that includes the ethical implications of AI systems. “As AI becomes more influential, we need professionals who ensure its fair and responsible use,” said a computer scientist, Glenn Riley. “AI ethicists work on bias detection, transparency, and privacy.” Tayyab noted that these specialists are also involved in policy and governance, helping shape the rules that guide AI development. Big data engineer Data is the lifeblood of AI, and managing it requires specialised skills. “Big data engineers process and manage large datasets that are crucial for training AI models,” said Tayyab. “They ensure the data infrastructure supports AI operations effectively.” Ahmad noted that these roles often overlap with cloud computing and storage technologies. AI consultant For organisations looking to adopt AI, consultants play a vital role in helping them navigate the transition. “AI consultants provide strategic guidance on how to implement AI tools, optimise processes, and identify areas of opportunity,” said Riley. According to Tayyab, consultants bridge the gap between business needs and technical solutions, making them valuable across all industries. AI trainer and assessor Less discussed but equally important are those who train AI models and assess their performance. “AI systems require curated datasets to learn effectively,” said Riley. “Trainers prepare these datasets while assessors evaluate the models’ accuracy and fairness.” These roles are especially relevant in companies focused on improving the reliability of AI outputs, including speech recognition and image classification. Virtual and augmented reality developer AI is playing a key role in immersive technologies like virtual and augmented reality. “AI-powered VR and AR are transforming industries like gaming, healthcare, and education,” said Riley. “Developers skilled in both areas are in high demand.” These professionals are responsible for creating immersive environments that respond intelligently to user interactions. Cybersecurity analyst As AI systems become more prevalent, so too do the threats against them. “Cybersecurity analysts ensure that AI systems are secure from vulnerabilities and attacks,” said Riley. “They protect sensitive models and data.” This role is gaining attention amid concerns over deepfakes, model poisoning, and data breaches. AI programmer in video games AI’s influence has also extended into the entertainment sector, particularly gaming. “It’s not really AI, but it’s about making virtual characters behave as if they’re smart,” said Chady. “It’s mostly smoke and mirrors, but the problems are fun and challenging nevertheless.” Conclusion Despite concerns that AI may displace human workers, experts believe the future lies in collaboration between humans and machines. “People worry that AI will take over,” said Lu. “But today’s AI is mostly based on statistics. It learns patterns but can’t think or create. We, as humans, are still far more complex.” Ultimately, the AI job market is expanding—not contracting—offering exciting and varied opportunities for those willing to adapt and learn. “AI may automate certain tasks,” said Riley, “but it also creates demand for jobs that require creativity, critical thinking, and ethical judgement—skills only humans can offer.”
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