companies, with more diverse income streams; thus, their incomes and stock prices tend to be more stable, but they also tend to have less future growth potential. High-quality large caps are sometimes termed blue chips.

Small caps may be subject to the uncertainties of new or growing markets, and may be in niche or emerging industries. Due to this relative instability, small caps are generally less able to weather negative macroeconomic situations than large caps are.

Therefore,

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