Category: Small Cap Select Commentaries

The Market: U.S. small-cap equities rallied strongly in the second quarter. Oil prices declined as tensions with Iran eased, unwinding much of the first quarter’s spike and removing a key source of uncertainty for the growth outlook. Inflation continued to run above target, keeping pressure on the Federal Reserve, though falling energy prices offered some…

The Market: U.S. small-cap equities rallied early in the first quarter before reversing late in the period and ending modestly higher. As we entered 2026, stable inflation, lower interest rate expectations, resilient employment, and positive indicators for broad industrial demand growth supported a favorable backdrop for stocks. That environment was particularly supportive for smaller companies,…

The Market: U.S. small-cap equities experienced a volatile fourth quarter but finished the period higher and ended the year up double digits overall. That outcome came amid a mixed policy backdrop, including the reopening of the U.S. government following a shutdown and continued interest rate cuts by the Federal Reserve, extending the easing cycle that…

The Market: U.S. small caps rallied sharply in the third quarter as expectations for easier monetary policy moved from discussion to implementation. Investor sentiment improved in August following the Fed Chair’s comments in Jackson Hole, and momentum carried through as rate cuts began in September. Inflation remained above target, but the market interpreted the shift…

The Market: U.S. small-cap equities posted strong gains in the second quarter. After the U.S. administration’s tariff pronouncements sparked early April’s sell-off, the market rebounded once investors recognized the steep rates were more a negotiating tactic than permanent policy. A temporary 90-day rollback created room for talks, and while broader resolutions remain uncertain, several smaller…

The Market: U.S. small caps declined in the first quarter, pressured by a mix of policy shifts and market uncertainty. The new presidential administration announced tariffs targeting Canada, Mexico, and China— some of which were implemented, while others were delayed or rolled back. The shifting nature of these actions introduced uncertainty around import costs and…

The Market: U.S. small-cap stocks experienced volatility in the fourth quarter, ultimately ending the period relatively flat. Post-election gains were erased after the Federal Reserve signaled a more restrained approach to future rate cuts, highlighting uncertainty around monetary policy and its implications for businesses. Nevertheless, the Fed’s stance reflects confidence in the U.S. economy, underpinned…

The Market: In the third quarter, small-cap stocks posted strong returns, building on their year-to-date gains. Inflation continued to ease, and despite some volatility in labor market data, the US economy consistently added jobs. Additionally, economic growth indicators remained robust. This combination of stabilizing prices and a steadying labor market led the US Federal Reserve…

The Market: US small-cap stocks gave up some of their gains in the second quarter but remained positive for the year. After several disappointing inflation readings in the first months of 2024, we saw a return to the disinflation trend that began last year. Along with the positive news regarding prices, we continued to see…

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…

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…

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…

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…

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…

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…

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…