Professor Glenn A. Okun
The Rabid Capitalist: The Big Point is a brief summary of a detailed note available to paid subscribers.
The Federal Reserve’s interest rate policy has pressured the financial performance of small and midsize U.S. companies. The “higher for longer” expectation for interest rates will impose growing risk on the balance sheets of these firms. The effects can be observed in the relative performance of the S&P 500 and the Russell 2000. Although small cap stocks are cheap, the Rabid Capitalist would not invest in the Russell 2000 index as a result.
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