July 19, 2024
Eric Green, CFA
CIO - Equity, Sr. Portfolio Manager
What is the credit market telling us about the potential of equity returns?
After significant underperformance of small cap equities relative to large cap equities during the first half of the year, we believe small cap stocks began their recovery on both an absolute basis and relative basis to large cap stocks. Although credit market improvement year-to-date has propelled the mega cap stocks, small cap stocks have been left behind. This is an unusual occurrence in a strong credit environment, and we expect small cap stocks to catch up with large cap over the next year.
