Posted 1/22/2024, 4:47:34 PM
Small Caps Poised to Rally as Rates Decline, Say Strategists
- Stocks at record highs, but small caps not participating in recent tech-led rally
- Goldman Sachs sees 15% upside for small caps in next 12 months as risk premium declines
- Pullback in small caps due to blistering rally to end 2022 and questions around Fed rate cut timing
- Strategists say Fed cuts still coming in 2023, combined with economic growth leaves small cap thesis intact
- Cash on sidelines and attractive valuations could fuel rotation into small caps as rates fall