Are emerging small-cap stocks signaling a new risk environment?
The relationship of small-cap to large-cap stock prices is a noted indicator of risk appetite in the broad U.S. equity market. We can extend this logic to emerging markets as well.
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The relationship of small-cap to large-cap stock prices is a noted indicator of risk appetite in the broad U.S. equity market. We can extend this logic to emerging markets as well.
While the global markets have consolidated from their overbought position, the U.S. domestic economy appears to be stabilizing.