Small caps are very sensitive to interest rates and perform a...

Small caps are very sensitive to interest rates and perform a lot better when rates drop. Market sentiment towards small cap turns bullish. We have seen the trend change in July with Russell 2000 outperforming and money rotation into small caps.

It's not all doom and gloom for $EML if interest rates drop due to (a) bullish small cap sentiment attracting higher valuation multiple and (b) low interest rates mean high disposable income and higher discretionary spending i.e. higher organic growth and increased revenue.