ISCB - Are Small- And Mid-Sized Companies Primed To Outperform?

2024-05-13 16:20:00 ET

Summary

• Lower financing costs and loosening credit availability can help level the playing field between small- and large-cap stocks.
• Smaller caps are often under researched. Also, a selective approach helps find overlooked opportunities and manage risks.
• Our portfolio managers see potential opportunities in technology, biotechnology, US housing, trucking, and industrials.

The stage could be a set for a recovery in small- and mid-cap stocks. Why? If interest rates have peaked and a pattern of lower interest rates emerges over the next few years, it should bode well for small-cap stocks. Lower interest rates can lower financing costs and loosen up the availability of credit, which can help level the playing field between small- and larger-capitalization stocks....

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