Francis Gannon’s 2019 Small-Cap Outlook—Royce
article 01-07-2019

Francis Gannon on Asset TV’s 2019 Outlook Masterclass

Co-CIO Francis Gannon joined Asset TV's 2019 Outlook Masterclass to discuss the recent market correction and his outlook for 2019.


Co-CIO Francis Gannon joined host Laura J. Keller and three other investment professionals on Asset TV's Masterclass: 2019 Outlook, which aired January 2, 2019, to discuss the recent correction and what investors and advisors may expect in the new year.

Watch Francis’ appearance here.

Francis said he believes the correction that took place in the latter half of 2018 is healthy, but he’s curious as to how it will play into 2019. “The question is where will it end or if it will end, and how does that fit into 2019?” he says.

Francis also noted that he believes we’ll see increased volatility and lower returns in the new year, which will create an environment for active managers to perform better. “I think people were lulled to sleep by the lack of volatility in the market over the past several years and you're starting to see that in the latter part of the year here,” he added. “They're used to seeing great returns, concentrated in certain sectors, and names within the market, but I do think overall you're going to see lower returns, which is also a good thing.”

Most domestic companies have been reporting that they’re “very cautiously optimistic about their prospects,” Francis says. He added that he believes the market’s underlying fundamentals are okay and that it’s acceptable for the economy to slow in 2019. While some industries seem to experience periods of slowdowns at different points, Francis says this is currently priced into the market.

Watch Francis’ appearance here.

Bio of Francis Gannon:

Co-CIO Francis Gannon has been with Royce for 12 years, having joined in 2006. He has 26 years of experience, and in 2001 a portfolio under his management, SunAmerica Growth and Income Fund, was listed in the fourth edition of Gene Walden's book The 100 Best Mutual Funds to Own in America. He was also a regular panelist with Louis Rukeyser's Wall Street for several years. Francis holds a bachelor’s degree and a master’s degree from Boston College.

Important Disclosure Information

The thoughts and opinions expressed in the video are solely those of the persons speaking as of December 13, 2018 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.

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