Francis Gannon Shares His 2021 Outlook on Yahoo Finance—Royce
article 04-01-2021

Francis Gannon Shares His 2021 Outlook on Yahoo Finance

Co-CIO Francis Gannon discussed why Main Street will be the beneficiary of the economic recovery on Yahoo Finance.

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Co-CIO Francis Gannon recently joined another investment professional on Yahoo Finance to discuss his outlook for the year and why cyclical small caps should continue to do well.

Watch the video here.

Francis detailed that he believes Main Street will be the clear beneficiary over Wall Street as a result of the economic recovery, adding that the recovery is moving into expansion. In addition, he believes raising corporate taxes will negatively impact small cap earnings but that cyclical stocks are nonetheless poised to continue doing well going forward.

“The key to this story, in terms of the market and particularly small caps, is going to be earnings and earnings growth,” he said. “I think the earnings for small caps this year and into the next is going to be quite powerful, especially given the fact that we’re talking about GDP numbers being north of 5% over the next several quarters.”

Watch the video 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 March 31, 2021 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.

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.

The Nasdaq100 is an unmanaged, capitalization-weighted index. It measures the performance of the 100 largest domestic and international non-financial companies listed on the Nasdaq Stock Market based on market capitalization.

The S&P 500 is an index of U.S. large-cap stocks selected by Standard & Poor’s based on market size, liquidity, and industry grouping, among other factors, and includes reinvested dividends.

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. All indexes referenced are unmanaged and capitalization-weighted. The Russell 2000 Index is an index of domestic small-cap stocks that 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.

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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