What is the relationship between interest rates and small-cap stock performance?
When interest rates increase, small-cap stocks tend to do less well. That’s because smaller companies tend to rely on outside funding for cash flow. When interest rates rise, that means small-cap companies have to pay more in interest, reducing their profits. But Penny Sleuth sifts through the small-cap universe to tell you about the best investments — whether the market is up or down.
