Royce co-CIO Francis Gannon explores why ongoing earnings strength for small-cap cyclicals is bolstering confidence in the sector.
History suggests that it's time for value stocks—as well as cyclical sectors—to take the lead in small-caps, yet investors seem to be resisting the shift. What's behind the disconnect?
Small cap stocks
Royce co-CIO Francis Gannon explains why he thinks select small-cap cyclicals look well positioned to lead in the months ahead.
Despite a wild finish, the second quarter was still markedly more bullish and less volatile than the first—and saw a shift in small-cap style leadership that we’ll be watching closely.
From upcoming U.S. midterm elections to ongoing deregulation, four small-cap specialists discuss what they believe many investors are not considering -- but should be.
Chart of the Week
Chart Courtesy of Western Asset Management. Source: U.S. Bureau of Labor Statistics, as of Nov 30, 2018. Past performance is no guarantee of future results. Indexes are unmanaged, and not available for direct investment. Index returns do not include fees or sales charges. This information is provided for illustrative purposes only and does not reflect the performance of an actual investment.
Chart of the Week
China’s growth figures were unexciting, but the trade picture may be improving; U.S. consumers spent well in November; Mario Draghi stuck to the ECB’s plan, but didn’t sound cheerful about it.
Much Ado About the Midterms? Royce managers offer their insights about the investment implications on small-cap stocks.
Surveying the small cap landscape after a period of strong gain, Royce co-CIO Francis Gannon is selectively bullish -- but generally wary of the considerable risks for growth stocks and defensive industries.
During the first six months of 2018, small-cap stocks enjoyed the good times bred by a bull market that at this writing has not yet slowed down.
The case for a strategic allocation to international small cap is well supported by historical data.
Co-CIO Francis Gannon explains why upward revisions to CapEx spending could be very good news for small-cap cyclicals.
Thoughts on Brexit, tariffs, and the need to look beyond a company's home country to understand the true scope of its business.
Bill Hench looks at the dynamics in the retail industry and outlines the factors that he thinks will help some companies to survive and thrive.
...and probably here to stay, notes Royce co-CIO Francis Gannon. His advice: tune out the noise about tariffs and rising rates, and instead focus on cyclical small caps with improving earnings and global exposure.
Increased volatility is obscuring the rising strength of small-cap earnings, which we believe should ultimately translate into leadership for certain cyclical sectors—those that combine profitability, relatively attractive valuation, and global exposure.
Small cap stocks
If the Russell 2000 index were a company, how attractive would it be to investors? Royce co-CIO Francis Gannon has his doubts.
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