Please note: this article is more than one year old. The views of our CIO team may have changed since it was published, and the data on which it was based may have been revised.
In our latest CIO Special, 'U.S. small cap out-performance may continue' we look at why U.S. small cap equities within the S&P 600 have recently outperformed the S&P 500 and the outlook for both indices.
Our key takeaways are as follows:
- Since the end of Q3 the S&P 600 small cap index has outperformed the S&P 500 by 5 ppts.
- Despite the rally small caps are trading at a discount, after having mostly traded at a premium in the past.
- Across regions we continue to prefer European stocks over U.S. stocks.