InvestTalk
InvestTalk
Hosts Justin Klein & Luke Guerrero, CFA | Wealth Managers and Investment Advisors
InvestTalk 12-12-2023 – Should Investors Keep an Eye on Small-Cap Stocks?
46 minutes Posted Dec 13, 2023 at 1:22 am.
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Increasing concentration reduces the benefits of diversification and increases a portfolio’s exposure to idiosyncratic risks.

(A November 2023 study has determined that concentrated stock markets, dominated by a small number of very successful firms, are associated with less efficient capital allocation, sluggish initial public offering and innovation activity, and slower economic growth.)

 

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