Low Quality Playbook, Ripped Off Band-Aids In Small Cap, Consumer Stabilization
By Lori Calvasina
Published August 15, 2022 | 6 min listen
Today in the podcast, a few thoughts on the composition of the snap back in stocks, where the earnings band-aid may have been ripped off within Small Cap, and the thing that caught our eye in our sentiment indicators. Three big things you need to know: First, low quality has started to work within Large Cap, something that’s frustrating investors, but began for Small Cap in June and typically happens after stocks have found their mid recession bottom. Second, we’ve been getting asked by Small Cap investors about where earnings sentiment has been most depressed within the Russell 2000 – similar to Large Cap it’s a number of key consumer/Tech/cyclical groups. Third, what jumped out most in terms of our sentiment indicators last week is that consumers of all political affiliations are feeling a little bit better in August, helping consumer sentiment stabilize a bit in the University of Michigan survey.
Lori Calvasina
Managing Director & Global Head of 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 MotionRBC PodcastStock Market