Small cap outlook – fundamentals, economy and expectations are up, by Joe Frohna, founding principal and portfolio manager with Milwaukee-based 1492 Capital Management.
Despite prognostications by market soothsayers that the run for small cap stocks is over, we remain bullish and believe that 2011 economic data and corporate profits will exceed expectations.
Small cap outperformance cycles generally last 5.9 years on average, and we’re only two years into this cycle. Despite near-term headwinds like Japan’s earthquake disaster and rising oil prices due to Middle East unrest, there are many offsetting positives like rebounding fund flows, robust GDP growth, accelerating M&A activity and, ultimately, the $300 billion repair of northern Japan.
Read more here in the latest issue of BizTimes Milwaukee.
