Small caps will be ‘the hardest hit’ by tariffs, historically compressing +30% in recessions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 07 2025
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Source: SeekingAlpha
BofA Securities' Caution on Russell 2000: BofA Securities advises against buying the Russell 2000 due to its significant 25% decline since November, attributing this drop to fears of further declines and the impact of tariffs on small-cap companies.
Potential Impact of Tariffs: The analysis indicates that tariffs could severely affect operating income for small caps, with projections suggesting a 22% hit without retaliation and up to 100% with retaliation, highlighting the need for defensive positioning in the current market.
Analyst Views on IWM
Wall Street analysts forecast IWM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for IWM is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 267.790
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Current: 267.790
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
