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

Investor demand meets 'relentless supply' of record-breaking US Treasury bond sales
US

Investor demand meets 'relentless supply' of record-breaking US Treasury bond sales

Government attempts to plug debt vacuum

Eve Maddock-Jones
clock 08 February 2024 • 4 min read
Jerome Powell: Fed united in cutting rates this year
US

Jerome Powell: Fed united in cutting rates this year

Timing brings risks

Eve Maddock-Jones
clock 05 February 2024 • 2 min read
T. Rowe Price's Ritu Vohora: US small cap stocks offer strong fundamentals and cheap valuations
US

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

Soft landing prospects

Ritu Vohora
clock 01 February 2024 • 4 min read
Trustpilot