ISCB - Small-Cap Stocks May Be At Risk According To NFIB Data

2024-02-23 15:15:00 ET

Summary

• Retail investors have started chasing small-cap stocks in hopes of a rate cutting cycle by the Fed and avoiding a recession.
• The primary economic data points continue to be very robust. Low unemployment, strong economic growth, and declining rates of inflation.
• There are risks to assuming a solid economic and employment recovery over the next couple of quarters.

Recently, retail investors have started chasing small-cap stocks in hopes of both a rate cutting cycle by the Federal Reserve and avoiding a recession. Such would seem logical given that, historically, small capitalization companies tend to perform best during the early stages of an economic recovery....

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