Reported 6 months ago
Small-cap stocks have been trailing larger markets recently, but some analysts believe there is potential for them to catch up, with a 'large catch-up trade' materializing due to anticipated rate changes. While a higher interest rate environment may affect small-caps more than large-caps, experts like Greg Tuorto from Goldman Sachs Asset Management suggest that this trend is an opportunity for investors to consider small-cap stocks. Stock selection is deemed crucial in the small-cap sector, with companies like Boot Barn, Transmedics, and Digital Ocean showing promise for growth. Despite challenges, small-cap stocks like Boot Barn have demonstrated strong performance and potential for further growth. Greg Tuorto emphasizes the importance of active stock picking in small-caps over passive investment strategies like ETFs, as it allows for the selection of companies with solid growth prospects amidst market uncertainties.
Source: YAHOO