Steve Lipper On Nasdaq TradeTalks—Royce
article 11-05-2020

Steve Lipper On Nasdaq TradeTalks

Senior Investment Strategist Steve Lipper was a guest on Nasdaq TradeTalks to discuss why small caps may do well going forward and how the election may impact the asset class’s performance.

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Senior Investment Strategist Steve Lipper joined host Jill Malandrino on Nasdaq TradeTalks to detail why he believes small caps are poised to do well going forward.

Watch Steve's appearance here.

Steve said small caps tend to be more cyclical than their large cap peers, so it’s advantageous to invest in small caps when the economy is recovering from a downturn and there is a path towards continued growth—similar to the current environment. He added that investors are currently in what can be considered small cap season: Steve analyzed 75 years of historical data and saw that small caps post much higher returns on average for the six-month period beginning October 31 than for other comparable periods throughout the year.

Steve also discussed that if one party sweeps in the election, then we may see more changes. He added that if instead the election results in divided government, then a large stimulus package is unlikely, but the economy is likely to recover on a moderate basis.

Watch Steve's appearance here.

Learn more about Steve Lipper here.

Important Disclosure Information

The thoughts and opinions expressed in the video are solely those of the persons speaking as of November 4, 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.

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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