```html What is the Relationship Between Small-Cap Stocks (Russell 2000) and Interest Rates? What is the Relationship Between Small-Cap Stocks (Russell 2000) and Interest Rates? Understanding the intricate dance between different asset classes and macroeconomic factors is paramount for any astute trader. Among the most discussed dynamics is the interplay between small-cap stocks, epitomized by the Russell 2000 index, and interest rates. This relationship is not always straightforward, but its implications for portfolio construction and trading strategies are profound. This article will delve into the theoretical underpinnings, practical observations, and key considerations for traders navigating this complex landscape. The Small-Cap Universe: A Closer Look at the Russell 2000 Defining Small-Cap Stocks Small-cap stocks represent companies with relatively small market capitalizations, typically ranging from $300 million to $2 billion, t...