Higher commodity and wage inflation combined with hawkish interest rate expectations may create a challenging environment for U.S. small-cap stocks. In a prior note (Data Insight: A Turbulent Start to the Year for Global Equities, January 27, 2022), we found that the Russell 2000 has suffered the largest drawdowns to begin the year.  As of February 18th, 29% of constituents have experienced a drawdown of at least 50% or more compared to their 52-week high.  Furthermore, only 31% of constituents are currently trading above the 200-day moving average. Smaller companies will have greater challenges managing higher input costs and typically

The losers from the U.S. government’s trade war have a name: mom and pop. Small businesses selling goods like wedding dresses, lawn sweepers and bike helmets have asked U.S. officials to drop proposed tariffs on $200 billion in Chinese imports, the latest escalation in a trade tit-for-tat. They show how much production of lower-tech items has moved overseas, but also how that has created other benefits for businesses and consumers. Hundreds of company owners have been in Washington this week to tell the U.S. government that the latest tariffs would threaten their livelihoods. Competition from China forced Indiana-based American Lawn