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Small caps tend to earn a majority of their revenues domestically. Still, that may not insulate the stocks from tariffs, says Craig Kempler, Portfolio Manager at Perkins Investment Management. Here's what investors can do.
There is much debate on the impact of tariffs on small-cap companies. When the prospect of new or rising tariffs first arose, many investors took the view that small-cap companies would be immune because of their domestic focus. We did not share this view then, and do not now.
Tariffs typically manifest themselves at the company level