July 02, 2021
The global pandemic changed the world, but it is leaving opportunity in its wake. As investors rethink their portfolios, we believe now is the time to take advantage of these opportunities across the globe – particularly in small cap companies. While it is premature to know the timing and extent of the recovery, international small-caps have historically performed well relative to US Large-caps emerging from historical worldwide recessions and bear markets, illustrated below
International small-cap versus US large-cap performance during economic and bear market recoveries
Sources: Macquarie Investment, Morningstar; Past performance does not guarantee future results.
What this means for investors
While international small-caps should always play an important role in a long-term asset allocation strategy, now may be a good time to revisit your exposure to the asset class.