Further supporting the small-cap outlook, the U.S. economy is still showing signs of growth with U.S. retail sales and consumer spending trends on the rise while the rest of the world is revealing weaker economic data.
“Small cap equities provide an opportunity for investors to invest in companies that generate a large portion of their revenue inside the U.S., potentially insulating them from geopolitical developments,” according to Stifel’s O’Keeffe.
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Tom Lydon’s clients own shares of IWM.