Potential Turnaround for Small Caps After Decade of Underperformance
Schwab Network · Schwab Network
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Show Notes
“We could see a sustained period of outperformance for small caps,” argues Mike Rode. Small caps have underperformed for over a decade now. “Investors have not diversified towards the asset class,” he notes, preferring concentration in the Mag 7. However, catalysts including deregulation, M&A, IPOs and other factors hint at a potential turnaround. He thinks regional banks are particularly overlooked, and also likes biotech.
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