Miton's Ford: Small caps often struggle in late stage of cycle

Tax cuts to benefit US small caps

clock
Nick Ford of Miton
Image:

Nick Ford of Miton

US smaller companies disappointed relative to large caps in 2017. But this year, performance has been more even with smaller companies actually nudging ahead.

We see three potential drivers for this better relative performance for smaller companies to continue.  First is the change in outlook for the large-cap technology stocks, which were responsible for much of the S&P 500 index's gains last year. Trading in market-leading stocks, including Facebook, Amazon, Apple and Alphabet (Google's parent company), has become much more volatile amid the group's unfavourable media coverage.  Facebook's issues with data privacy have been well documented, but investors now also have to grapple with far greater scrutiny over how Amazon is able to mini...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on US

European-focused investment grade and high yield credit have highest inflows since April 2020.

Fixed income dominates ETF flows in July

Accounted for $32.5bn

clock 08 August 2022 • 2 min read
Fed chair Jerome Powell
US

Fed makes further 75 basis points hike in bid to tame inflation

Rates have reached 2.25%

clock 28 July 2022 • 2 min read
Chris Brightman is the CIO and CEO of Research Affiliates

Research Affiliates: Real interest rates will remain higher even after inflation is tamed

Tougher conditions for capital markets

clock 22 July 2022 • 4 min read
Trustpilot