The high and rising share of small-cap companies with negative earnings makes middle-market companies more vulnerable as the Fed keeps interest rates higher for longer, see chart below.
40% Of Russell 2000 Have Negative Earnings
Can Alternatives Replace Public Equity?
Listen to Chief Economist Torsten Sløk talk with Matt O’Mara, a Partner in Apollo’s Insurance Solutions Group, and Keith Black, Adjunct Faculty at the University of Massachusetts, about the concept of public equity replacement. Drawing from the work presented in their latest white paper, Matt and Keith argue how a portfolio of alternatives can keep the positive traits of public equity while mitigating its vulnerabilities. Learn how, why, and much more in this thought-provoking episode.
Goods Weak, Services Strong
Imports are falling, and this normally only happens when the economy is in a recession, see chart below.
The weakness in the goods sector is offset by continued strength in the less interest rate-sensitive service sector, which makes up 80% of GDP.
