Just as small cap investors finally got some reprieve from the first interest rate cut in Australia in five years, along came US President Donald Trump with his erratic trade policies that have reignited fears of a recession and wiped trillions of dollars from the sharemarket.
And as Trump continues to whipsaw markets with his on again, off again tariff threats, volatility is on the rise and jittery investors are being quick to dump stocks. It’s an environment that typically does not lend itself well to the smaller end of the sharemarket, where price moves tend to be magnified.
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Sarah Jones is the Financial Review’s markets editor based in the Sydney newsroom. She has covered financial markets, economics and asset management for more than two decades including 12 years for Bloomberg in London. Connect with Sarah on Twitter. Email Sarah at sa.jones@afr.com
