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.