SOLLINDA Capital Management: Tighter financial conditions may cause small-cap stocks to underperform large-cap stocks.

SOLLINDA Capital Management Chief Investment Officer Justin Greenhill: The signals released at the Wash press conference are clearly hawkish. We believe that this may at least help alleviate the recent upward trend in long-term bond yields in the short term. It is still unclear how this will affect the stock market, but we expect that as financial conditions tighten further, small-cap stocks will underperform large-cap stocks.