T. Rowe Price's Ritu Vohora: US small cap stocks offer strong fundamentals and cheap valuations

Soft landing prospects

clock • 4 min read

If high inflation and rising rates are supposed to kill growth, the US economy does not appear to have received the memo.

Once again, the US economy has proved itself to be remarkably resilient, with it Q3 growth figures far exceeding market expectations. Now, as inflation continues to decelerate and markets price in rate cuts, the prospect of a soft economic landing in 2024 appears to be growing. Federal Reserve holds rates steady as Jerome Powell dampens March cut hopes This is particularly good news for US smaller companies, which have borne the brunt of heightened risk aversion. Smaller firms have historically traded at a premium to large-caps due to their higher risk/return profile, but over t...

To continue reading this article...

Join Investment Week for free

  • 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

Federal Reserve holds interest rate steady amid cooling inflation
US

Federal Reserve holds interest rate steady amid cooling inflation

5.25-5.5% hold

clock 13 June 2024 • 2 min read
US appeals court rejects SEC's new disclosure rules for private equity and hedge funds
US

US appeals court rejects SEC's new disclosure rules for private equity and hedge funds

A ‘significant victory’ for markets

clock 06 June 2024 • 1 min read
Can the Fed ignore political pressures as the presidential election approaches?
US

Can the Fed ignore political pressures as the presidential election approaches?

Central bank independence questioned

Christophe Boucher and Benoît Begoc
clock 31 May 2024 • 4 min read
Trustpilot