Which areas can investors exploit in the US small-cap market?

Since the downturn at the close of 2018, US equities have rebounded with smaller caps up over 16% and outpacing the returns of large caps.

We believe US economic strength could continue with potential upside in smaller companies, which range from nascent public companies to more established mid-sized enterprises.  If the market continues to appreciate, as US economic data supports, smaller caps could benefit from greater US sourced revenue, relative insulation from geopolitical noise and a weaker international landscape. However, if market concerns overpower fundamentals, it could spur an equity decline that could disproportionately affect smaller- cap stocks. In order to preserve capital in a downturn, we believe qualit...