ASX small caps to surge once Fed starts cutting rates

Copy link Copied Copy link Copied Subscribe to gift this article Gift 5 articles to anyone you choose each month when you subscribe. Already a subscriber? Login Australia’s sharemarket could be on the cusp of a mass rotation into beaten-down small caps, triggered by the US Federal Reserve handing down its first interest rate cut in more than four years. It follows a tough three-year period for the ASX’s smallest companies that have lagged their larger counterparts during the most aggressive tightening cycle by central banks in a generation, which elevated the risks of a recession.

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