Small caps to lead recovery says Legg Mason

Small cap stocks will lead the market in the early stages of recovery, according to Legg Mason affili...

Small cap stocks will lead the market in the early stages of recovery, according to Legg Mason affiliate, Royce & Associates. CIO and portfolio manager, Chuck Royce, says he is confident small caps should lead in the early phase of a prolonged recovery in stocks, while agriculture will present opportunities in the medium term. "Stronger, more conservatively capitalised, smaller companies have advantages in being more nimble than most of their larger cohorts," says Royce. "They are also more stable than many of their smaller siblings." Royce says overall small cap valuations have reach...