Small-Cap Recession Warning Signal
Small-cap stocks are indicating signs of a coming recession, suggesting a bearish outlook for the market.
Too little corroboration in the last 3 days to call a trend (3 articles). Watching for it to gain traction.
Mainstream financial press is carrying this — attention has broadened beyond specialist outlets.
"A massive bull market in mega caps is hiding a quiet stock crash. Too many stocks have gone nowhere for too long. That's a bear market."
""Questions over a softening in economic growth, stagflation, or even a recession, are more apt to adversely affect small caps than large caps, thus placing them between a rock and a hard place.""
"Questions over a softening in economic growth, stagflation, or even a recession, are more apt to adversely affect small caps than large caps."
"Stocks of the smallest companies, whose profits can be more closely tied to the strength of the U.S. economy than big multinational rivals, fell more than the rest of the market."
"Stocks of the smallest companies, whose profits can be more closely tied to the strength of the U.S. economy than big multinational rivals, fell more than the rest of the market."
"Small-cap stocks also felt the pressure, snapping a long winning streak as investor anxiety grew."
"The aggressive policy tightening has also triggered worries of an economic downturn, with JPMorgan, Citigroup and BlackRock among those that believe a recession is likely in 2023."
"Small-cap stocks, which are generally more exposed to economic developments, are more vulnerable than large-caps to wage pressures."
"Small-company stocks fell more than the broader market, in another signal that investors are worried about economic growth."
"Stocks have declined almost 35% on average when a bear market coincides with a recession."