Science4Data Article Insights

https://www.blog.invesco.us.com/small-cap-stocks-have-historically-outperformed-after-recessions/

Small-cap stocks have historically outperformed after recessions – Expert Investment Views: Invesco Blog

2020-07-02 14:43:50, CFA, source

Content Categorization
/Business & Industrial
/News/Business News
/Finance/Investing

Word Count:
1185

Words/Sentence:
22

Reading Time:
11.85 min

Reading Quality:
Advanced

Readability:
16th or higher

Media Sentiment
Proprietary sentiment analysis on both the headline and body text of the article. Sentiment scores range from -1 (very negative sentiment) to 1 (very positive sentiment).
RCS Analysis
Relative scoring for Risk, Crisis, and Security language within the article.
Risk Score
Scoring based on the composite risk, security and crisis language within an article compared to a baseline of historic analysis across thousands of diverse articles.
PESTEL Scope
Analysis of article orientation across the PESTEL macro-environmental analysis framework. Learn more about PESTEL.
Entity Word Cloud
Key people, places, organizations and events referenced in the article, weighted by frequency and colored based on contextual sentiment.
Auto Summary
Condensing key features of the article based on salience analysis. Helpful for “gisting” the article in a time crunch.

Figure 2: Small caps have historically outperformed coming out of recessions Subsequent 1- and 3-year returns after the past four recessions

Figure 1: Small caps have started to recover this year's market troughTotal returns of small-cap vs. large-cap stocks on a year-to-date basis

Small-cap stocks have had a tough run versus the larger-cap cohort of the US equity market, having underperformed large caps three consecutive calendar years and four of the past five years (on the basis of the Russell 2000 Index representing small caps, and the Russell 1000 Index, large caps).

As shown in Figure 2, small caps have outperformed large caps coming out of the past four recessions in all but one of the subsequent 1- and 3-year periods.

That said, we believe this is an exciting time for active stock pickers in the small-cap space who can identify companies with financial strength and management teams that have shown an ability to navigate through challenging environments.

Keywords

Interested in Learning More?

Article Analysis is at the foundation of powerful media monitoring and insights. Learn what you can build with powerful curated search engines, real-time listening and trend analysis on the topics, markets and companies critical to your organization.