The higher-for-longer rate path outlined by the Federal Reserve this past week could mean a delayed recovery for small caps and international stocks.
Small cap and international stocks are sorely lagging this year.
While the S & P 500 remains higher on the year by more than 12%, the S & P Small Cap 600 is down 1%.
"Should we see a turnaround in small and international stocks, then these would likely benefit, but also hold up better if that recovery is delayed," Stovall said.
He added, "In a sense you're holding the bluest of blue-chip stocks on a global basis, or the strongest of small cap stocks."
Persons:
Sam Stovall, Stovall
Organizations:
Federal, Pacer