Forty-one percent of companies in the Russell 2000 have negative earnings, see the first chart.
With this backdrop, it is unsurprising that Fed hikes have a more negative impact on small-cap and middle-market companies than on large-cap companies, see the second chart.
The negative impact can be felt in particular in tech, enterprise software, venture capital, and similar firms with no earnings and no revenue.
Source: Bloomberg, Apollo Chief EconomistSource: Bloomberg, Apollo Chief Economist
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