Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.

What market conditions favor small cap stocks over medium cap stocks?
Small companies are generally able to adapt quickly to take advantage of changing conditions to enter new markets when the economy is growing. This gives them a lot of growth potential under those circumstances. However, in times of crisis, there may not be a lot of new markets to enter, and financing to expand any operations may be impossible to get. Under these conditions, small-caps will suffer relative to large-caps.