Francis Gannon On Nasdaq TradeTalks —Royce
article 10-28-2020

Francis Gannon On Nasdaq TradeTalks

Co-CIO Francis Gannon was a guest on Nasdaq TradeTalks to discuss five reasons he’s optimistic about the future of small-caps, regardless of the election outcome.


Co-CIO Francis Gannon joined host Jill Malandrino on Nasdaq TradeTalks to detail why he believes investors should be optimistic about the future of small-cap stocks regardless of the outcome of the U.S. election.

Watch Francis's appearance here.

Francis detailed five reasons that could suggest small caps are poised to do well going forward, noting that the first three reasons are already present. Francis explained that the Russell 2000 Index hasn’t hit a new high in the current environment like most other indexes have, adding that the Russell 2000 finished 3Q20 down more than 10% from its previous peak on 8/31/18. He noted that small caps have historically had significant room to run after the recovery from a recessionary trough, which we experienced in March 2020.

Francis also made his case for why he believes small-cap cyclicals are attractive opportunities going forward. He added that, regardless of the election outcome, he expects that earnings will broaden and that the economy will improve.

Watch Francis's appearance here.

Learn more about Francis Gannon here.

Important Disclosure Information

The thoughts and opinions expressed in the video are solely those of the persons speaking as of October 26, 2020 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.

The performance data and trends outlined in this presentation are presented for illustrative purposes only. Past performance is no guarantee of future results. Historical market trends are not necessarily indicative of future market movements.

Sector weightings are determined using the Global Industry Classification Standard ("GICS"). GICS was developed by, and is the exclusive property of, Standard & Poor's Financial Services LLC ("S&P") and MSCI Inc. ("MSCI"). GICS is the trademark of S&P and MSCI. "Global Industry Classification Standard (GICS)" and "GICS Direct" are service marks of S&P and MSCI.

Cyclical and Defensive are defined as follows: Cyclical: Communication Services, Consumer Discretionary, Energy, Financials, Industrials, Information Technology, and Materials. Defensive: Consumer Staples, Health Care, Real Estate, Utilities.

Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and / or Russell ratings or underlying data and no party may rely on any Russell Indexes and / or Russell ratings and / or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication. The Russell 2000 Index is an unmanaged, capitalization-weighted index of domestic small-cap stocks. It measures the performance of the 2,000 smallest publicly traded U.S. companies in the Russell 3000 Index. The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index.

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