How Rate Cuts Could Drive Small-Cap Growth in 2025

Reported about 14 hours ago

Small-cap stocks, which have faced challenges in gaining traction, are now attracting attention from investors. Michael Reynolds from Glenmede believes that potential rate cuts in the latter half of 2025 could enhance the profitability of small caps, making them more attractive compared to large caps. He suggests that if the Fed implements two to three rate cuts, it could significantly benefit small-cap companies, as many have a higher proportion of floating-rate debt.

Source: YAHOO

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