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Russell 2000, The Weakest Link

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Folks, Inflation affects small companies more than the large-cap stocks. Capitalism supports the survival of the fittest businesses. Many large-cap companies can dominate the smaller competitors in a rising price environment as inflation is a more significant threat for companies with less capital. Rising interest rates that increase financing and debt servicing costs also weigh on profit margins. Inflation can be a damaging beast for the small-cap arena.

let me know about your thoughts on Russell 2000, Compared to S&P 500 will it fall much harder during the economic hardship cycle?

Not financial advice.





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