Small caps, big potential
Low valuations and likely rate cuts could make small cap stocks appealing.
- Interest rate cuts look increasingly likely, as the U.S. Federal Reserve (the Fed) weighs concerns about the U.S. economy and declines in inflation.
- Historically, small stocks’ valuations have tended to increase relative to large caps’ after the Fed cut interest rates.
- Low valuations and likely rate cuts could make small cap stocks appealing.
Next steps to consider
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