Small-cap stocks typically grow faster than mid- and large-caps but exhibit higher leverage and therefore greater downside risk. They tend to outperform during economic expansions and underperform in recessions, suggesting a cyclical bias that should influence portfolio allocation and risk management.
Small-cap stocks typically grow faster than mid- and large-caps but exhibit higher leverage and therefore greater downside risk. They tend to outperform during economic expansions and underperform in recessions, suggesting a cyclical bias that should influence portfolio allocation and risk management.
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