Miles Lewis On Yahoo Finance—Royce
article 10-02-2020

Miles Lewis Talks Small-Cap's Prospects and Consumer Incomes on Yahoo Finance

PM Miles Lewis was a guest on Yahoo Finance’s On The Move to discuss what he sees as the strong fundamentals in select small-caps in the current election season.


Miles Lewis was recently on Yahoo Finance’s On The Move to discuss the state of consumer incomes during the current recession, the looming elections, and why he thinks small-cap cyclicals are attractive opportunities going forward.

Watch Miles's appearance here.

Miles explained that some consumer incomes have risen during this recent pandemic-motivated recession as a result of the government stimulus checks. “Historically, incomes go down during a recession,” Miles Lewis said. “But the federal government has stepped in, in a big way to preserve what is effectively 70% of the U.S. economy, and that’s the consumer." Though there is debate surrounding how long this may last, Miles said the consumer is currently in healthy shape, all things considered.

He also explained that he believes small-caps are poised to do well going forward, citing history, as small-caps tend to perform well coming out of recessions. He added that he believes the current background is well set up for economically sensitive cyclical small-caps as earnings for select small-caps could be better than anticipated coming out of a recession.

Watch Miles's appearance here.

Learn more about Miles Lewis here.

Important Disclosure Information

The thoughts and opinions expressed in the video are solely those of the persons speaking as of September 30, 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.

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.

This material is not authorized for distribution unless preceded or accompanied by a current prospectus. Please read the prospectus carefully before investing or sending money. Smaller-cap stocks may involve considerably more risk than larger-cap stocks. (Please see "Primary Risks for Fund Investors" in the prospectus.)



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