One of the most notable characteristics of the last decade was the wide divergence in market performance. We have reported many times on the narrow group of superstars, mainly large-cap U.S. tech stocks and the much wider universe of laggards, value and small-cap stocks in particular.
In 2020 that divergence blew up. Small-cap went from worst to first. The year began disastrously. Small-caps ended the year with their best quarterly gain ever, a stunning 31% advance in the index, handily beating large-caps for the quarter.
When it was all over the Russell 2000 had gained 101.3% from its March 18th low to year-end, although it lagged large-cap and tech for the entire year.
We have a WEALTHTRACK exclusive this week with an investment legend whose specialty is in-depth financial analysis in the small-cap universe. He is Charlie Dreifus, lead portfolio manager of the Royce Special Equity Fund .
Before delving into small-caps I asked Dreifus to share his perspective on current market conditions based on his half-century of managing money. A hint: he told me “I’ve seen this movie before, and it doesn’t end well.”
WEALTHTRACK Episode #1732; Originally Broadcast on February 05, 2021
Listen to the audio-only version here:
Explore This Episode
We have compiled additional information and content related to this episode.
[tabcontainer] [tabtext]Guest Info[/tabtext] [tabtext]Action Point[/tabtext] [tabtext]Bookshelf[/tabtext] [tabtext]One Investment[/tabtext] [tabtext]Stock Mentions[/tabtext] [tabtext]Video Archive[/tabtext] [tabtext]Web Extra[/tabtext] [/tabcontainer]
- Lead Portfolio Manager,
- Royce Special Equity Fund
TAKE SOME RISK OFF THE TABLE
- Market Conditions Flashing Caution
- Winning By Losing Less: A Tried And True Approach
- Trim Some Of Your Most Elevated Holdings
No Bookshelf titles this week.
INVESTMENT RETURN BOOSTER
[tab]Chalres Dreifus from the WEALTHTRACK archives:
BEHAVIORAL PANDEMIC CHANGES
Working from home more will be a permanent effect of the pandemic experience for legendary investor Charlie Dreifus, but what about company visits, travel, colleague interactions? He discusses some of the behavioral changes he sees ahead.