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Small-Caps Break a 76-Year Pattern of Gains After a Midterm Election

Por: MarketWatch Business May 11, 2023

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If history is any guide, the negative performance is bad news for the economy. Small-caps tend to be a bellwether. They sell off before larger stocks as a recession approaches, hit their bottom before the economy reaches its nadir and lead the market out of the slump. Part of the reason is that they tend to accrue most of their earnings from the U.S. and can’t lean on global profits during a domestic downturn. Investors also tend to flee to... + full article



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