It’s no secret that President Trump’s tariffs have had a wide sweeping effect on the market. Rising tensions, retaliatory tariffs, and revisioning of global trade norms have all sent stocks falling in recent weeks. This has sent many investors scrambling to find sure footing in the new environment and the weighty changes that are occurring in the economy.
The answer may be found by thinking small.
Small-cap stocks could be unique winners during the Trump Presidency and the recent tariff environment. With fewer international sales than many larger firms, small-caps directly benefit from the ‘local’ economy. And with many pro-business policies, smaller firms could win big on tax policy and lower regulations. For investors, thinking small could be the best way to get through the dramatic changes happening.
