FYI: Two Wall Street strategists are casting doubt on one of this year’s most-popular trades: buy small-cap stocks.
Don’t be fooled by the consensus that smaller companies are better positioned to weather a global trade war, Barclays’ Maneesh Deshpande wrote in a note Monday. While it’s true that their domestic focus makes them less vulnerable to trade barriers, their bigger reliance on imports means they are susceptible to a deeper squeeze in profit margins, he added.
Regards,
Ted
https://www.fa-mag.com/news/barclays-joins-morgan-stanley-in-challenging-small-cap-rally-39651.html?print
