The valuations of small-mid cap companies are usually hit hard in tough economic climates.
These types of business are typically made up of quoted retailers, travel and leisure, construction and other domestically-focused companies, so are heavily exposed to rising interest rates.
By comparison large caps tend to be less affected than their small and mid-cap counterparts. At a time of high inflation and rising interest rates consumer pockets are being squeezed so they are spending less.
Article continues after advert
So how is the current interest rate environment driving your investment allocation approach?
Have your say by voting in the poll below.
