A soft landing would greatly boost small caps since they're economically sensitive, meaning they tend to thrive in expansions and fall during contractions.
Marcelli also made note of smaller companies' weaker balance sheets, though those are arguably accounted for in valuations.
With that said, those positive forces appear to be intact, so small caps could finally break out.
Instead of selling AI chips or products, smaller companies can enhance their productivity by using the technology, the strategy chief said.
5 sectors where small caps can thriveWithin small caps, Temple said he's less focused on what sector a company falls into and more concerned with whether that firm is financially healthy.
Persons:
haven't, Russell, Marcelli, Ronald Temple, Temple, couldn't, there's, Jack Janasiewicz, Janasiewicz, he's, you've, I'd, they've
Organizations:
Business, Yahoo Finance, UBS Global Wealth Management, Lazard Asset Management, Temple, Reserve, Savings, Nvidia, Devices, Microsoft