Environment Could Be Ripe for Small- and Mid-Cap Stocks

Even though their post-election surge has recently cooled, both small- and mid-cap equities remain well-poised in today’s market environment, according to two portfolio managers at Goldman Sachs in a recent Barron’s article. The authors outline the following supporting factors: President Trump’s’ agenda could “benefit small- and mid-cap companies disproportionately” since a large portion of their revenues come from domestic operations. Corporate tax reform could also have a bigger impact on smaller companies. The post-election surge might be a good sign. Historically, the authors argue, “months with the highest Russell 2000 returns have been followed by even stronger periods of performance, […]