Asset TV Mid-Year Outlook 2017: Equities
article 07-24-2017

Asset TV Mid-Year Outlook 2017: Equities

Co-CIO Francis Gannon recently sat down with Liz Claman to talk about his outlook for small-caps and where Royce is finding pockets of innovation within the asset class.

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Co-Chief Investment Officer Francis Gannon joined financial journalist and television host Liz Claman on Asset TV’s Mid-Year Outlook: Equities Outlook Panel on June 28, 2017 to discuss his outlook for small-caps and where Royce is finding pockets of innovation within the asset class.

In the piece, Frank shares his take on the first half of 2017: "Within the small-cap space, you do see certain trends within the value side of the market that have not been in place for many years. We saw a seismic shift last year in a bear market within the small-cap space that bottomed on February 11th of 2016… We are coming up on a two year period where you are seeing value outperform growth. And that’s going to be significant."

Frank also discusses where he sees opportunities: "I think that earnings will be better in small-caps through the end of the year. And it’s not going to be driven by the safe places in the market, because I think we’ve overpriced safety within the small-cap space. It’s going to be in economically sensitive, cyclical areas."

Frank added that there is "enormous innovation going on in small-caps today in the United States…and to focus on companies that are being innovative in a time of disruption." He highlights some of these businesses, including machinery and other industrial companies, as well as those in the technology sector, such as semiconductor equipment companies.

Watch Asset TV's 2017 Equities Outlook Panel here.

Important Disclosure Information

The thoughts and opinions expressed in the video are solely those of the persons speaking as of June 28, 2017 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.

Investments in securities of small-cap companies may involve considerably more risk than investments in securities of larger-cap companies. (Please see "Primary Risks for Fund Investors" in the prospectus.) 

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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