Why We Like Small Caps Longer Term
By Lori Calvasina
Published August 14, 2020
In this edition, Lori discusses her thoughts on the outlook for Small Cap stocks in the US. Three big things you need to know: (1) Lori sees greater opportunity in Small Caps than Large caps on a long-term, 3-5 year view, but prefers a more neutral stance on the two size segments on a 6-12 month time horizon. (2) In terms of stock price performance, Lori thinks Small Caps may benefit more in the short-term from a Trump re-election than a Biden win in this fall’s Presidential election. (3) Lori’s work finds that individual investors on the Robinhood platform have been more engaged with Large Caps and Nasdaq stocks than Small Cap stocks, helping to explain why Small Caps haven’t seen consistent outperformance since the mid-March low in the US equity market.
Lori Calvasina
Managing Director & Head of U.S. Equity Strategy, RBC Capital Markets
Lori Calvasina joined RBC Capital Markets as Head of U.S. Equity Strategy in 2017 as a Managing Director. Having spent nearly two decades as an equity strategist at major investment banks, Lori is an expert on the US stock market, and regularly represents RBC in the financial media on Bloomberg and CNBC. Prior to joining RBC, Lori was a senior equity strategist at Credit Suisse from 2010 to 2017, covering Small/Mid Cap Strategy from 2010-2014 and both Small/Mid Cap and US Equity Strategy from 2015-2017. She spent the first ten years of her career at Citi in a variety of roles including lead Small/Mid Cap Strategist from 2007-2010. In both 2008 and 2009 Lori was ranked #2 in the Small Companies category in the Institutional Investor All America Research team poll. Lori is a graduate of the University of Virginia and its selective Government & Foreign Affairs’ Honors Program. In 2019, she was named to Crains New York’s list of Notable Women in Finance.
Lori CalvasinaMarkets in Morion PodcastSmall Cap stocksUS equity market