Tom Lee, co-founder of Fundstrat, has projected that the S&P 500 will remain flat through August, while expressing optimism for small-cap stocks, suggesting they could rise by more than 15% during the month. Recent market trends indicate a significant rotation towards small caps, with these stocks outperforming larger counterparts. In the last ten days, global small caps have risen by 3%, contrasting with a 3% decline in large caps, marking a 6% spread not seen since at least 1993. Additionally, small caps have gained nearly 10% this month, and the iShares Russell 2000 ETF ($IWM) has outperformed major indices like the S&P 500 ($SPY) and the Nasdaq-100 ($QQQ). Analysts note that this rotation reflects shifting economic views, with small and value stocks gaining traction as large-cap technology stocks lag behind.