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What’s the outlook for US Small and Mid-Cap Equities? - Thorsten Becker

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1. What’s the outlook for US Small and Mid-Cap Equities?

Video transcript

1. What’s the outlook for US Small and Mid-Cap Equities?

My colleagues and I are quite, quite upbeat about the small and medium size companies in the US. It has to do with that they are quite insulated from the trade dispute and potential turmoil that we're seeing outside the US. Usually, 80-90% of the revenues of these companies are coming from the domestic market. Domestic markets are seeing a lot of investments, plus there's a potential for infrastructure investments quite severely needed in the US. Also, the tax reform is proportionate benefiting the smaller companies much more than large companies. And also, they benefit much more from the reduction in red-tape we're seeing from this administration. So, think what you want about the Trump Administration, but a lot of smaller companies are quite happy about the focus on domestic investments.