On December 6, 2020, Charlie Dreifus’s opinion piece, “The Economy Needs Stimulus Now,” that was published in The Hill detailed how small-cap companies could benefit from a focused stimulus package with policies that have multiplier effects on the economy.

Read the article.  

Charlie outlined that the stimulus package must require fiscal support for areas such as infrastructure, broadband, and targeted tax incentives. He added that this would not only create jobs and increase economic activity, but also allow the economy to become more productive. He said targeted tax incentives should cover new tax credits for the purchase of cars or homes, which would help the economy in areas with the highest multiplier effects.

Charlie said these government actions could be positively reflected in the stock market, thus helping small companies because they are more oriented toward the domestic economy than their large-cap peers. As a result, small-caps could feel these effects quickly and profoundly.

“As the economy starts to recover from a challenging but short recession, a significant stimulus would likely improve what is already a favorable climate for small companies,” Charlie Dreifus wrote. “So what benefits the domestic economy should also benefit most small companies.”

Read the article.  

Learn more about Charlie Dreifus here. 

More Insights From Charlie Dreifus On How The Election May Affect Small-Caps.

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