Category: Small Cap Select Commentaries

Historical commentaries are available upon request, please e-mail marketing@kennedycapital.com

Small Cap Select – Q1 2024 Commentary

April 23rd, 2024
The Market: Entering the year, financial markets anticipated more interest rate cuts in 2024 than what the US Federal Reserve projected during their December meeting. However, throughout the quarter, strong economic growth and employment metrics persisted, while inflation levels remained stubbornly high. The combination of robust employment data and stagnant disinflation led expectations for rate…

Small Cap Select – Q4 2023 Commentary

January 22nd, 2024
The Market In General: US small-cap stocks surged in the fourth quarter of 2023 as Federal Reserve officials revised their ‘higher-for-longer’ interest rate expectations.  Prompted by sustained economic growth and robust employment data, along with continued disinflation, the Fed signaled the conclusion of its rate-hiking cycle and projected multiple rate cuts in 2024.  These shifts…

Small Cap Select – Q3 2023 Commentary

October 23rd, 2023
The Market In General: The third quarter was defined by rising interest rates. Although the US Federal Reserve increased the Fed Funds rate by just 0.25%, long-dated treasury yields climbed dramatically throughout the quarter. This movement went beyond a reflection of robust economic data, which could pressure inflation upward, and accounted for the expectations set…

Small Cap Select – Q2 2023 Commentary

July 24th, 2023
The Market In General: The second quarter of 2023 proved to be a period of strong gains for the US equity markets, driven by a combination of factors that bolstered investor confidence.  Notably, there were significant declines in both headline and core inflation metrics, prompting the US Federal Reserve to take a measured approach and…

Small Cap Select – Q1 2023 Commentary

April 25th, 2023
The Market In General: The market continued to experience increased volatility during the first quarter of 2023.  At the outset of the year, the primary macroeconomic factors affecting the market were inflation concerns and the US Federal Reserve’s commitment to raising interest rates.  As expected, the Fed implemented rate hikes, but attention soon shifted to…

Small Cap Select – Q4 2022 Commentary

January 27th, 2023
The Market In General: US stocks finished the year on a positive note with small cap equities posting a gain in the fourth quarter.  The optimism was driven by headline and core inflation beginning to trend down after a series of unwelcome upside surprises.  While inflation started to move in the right direction, the US…

Small Cap Select – Q3 2022 Commentary

October 27th, 2022
The Market: US equity markets experienced a volatile third quarter.  Small cap stocks were up over 18% in early August only to end the quarter down more than 2%.  The volatility was driven by investors’ hope that inflation had peaked, followed by the realization that prices continue to climb.  Core inflation, a measure of prices…