By Steven Raineri, Vice President, Research Analyst, Portfolio Manager, Franklin Small Cap Value Fund
Franklin Small Cap Value Fund Portfolio Manager Steve Raineri gives five reasons why he thinks small-capitalization (small-cap) value stocks could perform well as the US economy continues to recover from the COVID-19 pandemic.
During a broad COVID-19 equity market selloff in March and April, US small-cap stocks were hit particularly hard.1 At the time, investors seemed especially concerned about how these companies would fare in a US economic slowdown.
Since then, many small-cap stocks, as represented by the Russell 2000