Small Caps: Poised for Outperformance in a Rising Interest Rate Environment
With an elevated amount of economic uncertainty roiling today’s markets, it might seem surprising that we believe investors should consider shifting exposure from larger, implicitly safer companies into what is widely regarded as the riskier asset class of small-cap stocks. Yet, that is precisely the case we hope to make in the course of this paper, outlining why it may be exactly the right time to increase allocations to these smaller companies.
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