Last weekend, I came across two pieces of research that talk about style factors in relation to recession and bear markets, which sounds interesting to me. The first report from First Eagle reflects upon their investment management in 2023 and covers economics, market valuation, small cap, private debt, housing. The second report is written by Morgan Stanley about Equity “Compounders” in a European investing context. Both reports provide insights on the timing of style factors or how well style factors are impacted by economic cycle changes. I thought I would go through some charts that might be interesting to me. The first one is from First Eagle. First Eagle explains that small caps traditionally have done well in a rising rate environment. However, their performance was heavily affected by regional bank failure and uncertainty in March 2023. First Eagle’s observation is similar to the small-cap data that I observed of the 1970s....