article , video 11-04-2016

What Small-Cap Investors Need to Know About the Election

Co-CIO Francis Gannon outlines what's important for small-cap investors to know about the upcoming election.  

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What do small-cap investors need to know about the election?

Well, to be sure, this has been a very tumultuous election season and it's creating a lot of uncertainty in a variety of different ways.

I guess from our standpoint as a small-cap investor, I have confidence in the fact that outside of the short-term noise that the election will create in the overall market, that buying good businesses, profitable businesses that have proper capital allocation, will be able to take advantage of any environment that comes in the post-election world, and will be better or higher from a business perspective or valuation perspective, in three to five years.

And I think that's the key thing to remember in this world. At this particular time, the key thing to remember is that elections create a lot of short-term noise. But as a long-term investor, you can benefit from the noise and therefore, the opportunities.

Important Disclosure Information

The thoughts and opinions expressed in the video are solely those of the persons speaking as of October 13, 2016 and may differ from those of other Royce investment professionals, or the firm as a whole. There can be no assurance with regard to future market movements.

This material is not authorized for distribution unless preceded or accompanied by a current prospectus. Please read the prospectus carefully before investing or sending money. Smaller-cap stocks may involve considerably more risk than larger-cap stocks. (Please see "Primary Risks for Fund Investors" in the prospectus.)

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