Richard Bernstein, a well-known investment strategist, believes that the sell-off in artificial intelligence-related technology stocks could benefit small-cap companies. According to him, this selling pressure could lower borrowing costs for small caps in the United States. This dynamic occurs within the context of the Federal Reserve’s monetary tightening. Bernstein suggests a potential reallocation of investment flows toward small caps, which have traditionally been less favored by institutional investors in recent years.
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