Small cap has seen a lot of influx, after the rotation from large cap and tech, after vaccines show positive reflections on the economy reopening, and continued low interest rates. These all support small cap companies, especially illiquid companies that will benefit from injections of capital via low interest rates. When the Fed signaled an earlier tapering of bond purchases and an earlier hawkish monetary policy, small caps took a hit, which has since seen a reversal.
The next event is the Fed signals for interest rate moves for the Fed meeting in July and the Jackson Hole Symposium. Also to watch is the reopening of the economy, end of the lockdown, and if people return to work, as well as ongoing stimulus.
Right now, prices appear to be channeling, and can go either way. I'm going to wait for the next dip, and then allocate into small caps.
Given that interest rates will remain zero until 2023, and low, for the next three years, small caps will be a great investment. So I will wait for the next dip.
The next event is the Fed signals for interest rate moves for the Fed meeting in July and the Jackson Hole Symposium. Also to watch is the reopening of the economy, end of the lockdown, and if people return to work, as well as ongoing stimulus.
Right now, prices appear to be channeling, and can go either way. I'm going to wait for the next dip, and then allocate into small caps.
Given that interest rates will remain zero until 2023, and low, for the next three years, small caps will be a great investment. So I will wait for the next dip.