Small-Cap Stocks Are Struggling. The Case for Going Even Smaller.

Smaller companies naturally tend to have less cash on hand and less access to financing. There are concerns about the potential slowdown in artificial intelligence development, but AI and tech are where the most earnings growth is. The macroeconomic backdrop is another headwind for small-caps, DeBusschere writes, as history shows they have typically lagged behind large-caps at the beginning of interest-rate hike cycles.