Until recently, investors saw smaller companies as a trusty shield against trade tensions. Given the health of the U.S. domestic economy, they should see them that way again. Small and mid-capitalization stocks—those with a market value less than roughly $5 billion—have performed badly over the past year. The S&P Small Cap 600 and the S&P Mid Cap 400 indexes have returned a negative 5% and 1% respectively, compared with a 6% gain for the S&P 500. Something similar has happened in Europe.

Source: Wall Street Journal May 22, 2019 12:39 UTC