Against the backdrop of the U.S.-China trade war, small cap stocks might appear to be a safe haven. After all, small cap stocks tend to be more insulated from such pressures…right? Not necessarily, according to Bank of America Merrill Lynch’s small cap expert, who is warning that “the widely held perception [small caps are] insulated from the effects is ill-conceived”. Perhaps even more concerning, she has “spott[ed] an ominous characteristic in the group that’s historically linked to economic downturns.” For more – including some possible positive exceptions within the small-cap space – CLICK HERE.