Small Caps' Recent Underperformance

The transcript discusses the performance and opportunities in the small cap market post-Trump election, highlighting the challenges in sectors like healthcare and financials. It explores the revenue generation of small caps, their debt issues, and the impact of economic growth scares. The discussion also covers the characteristics of small cap companies, their role in job creation, and the influence of the political environment on their performance.

What was the performance of small cap stocks in the fourth quarter of last year?

• They increased by 10%

• They remained stable

• They decreased by 20%

• They increased by 20%

Which sectors within the small cap space have faced challenges this year?

• Technology and Energy

• Healthcare and Financials

• Real Estate and Industrials

• Consumer Goods and Utilities

What is a significant source of revenue for industrial and material businesses in the small cap market?

• Domestic sales

• Government contracts

• International sales

• Local partnerships

What is a common characteristic of small cap companies in terms of growth?

• They often grow to become large cap companies

• They rapidly expand internationally

• They tend to remain small

• They frequently merge with large companies

What economic condition was reflected in the 26% bear market in small caps?

• A booming economy

• A recession that was priced in

• Stable economic growth

• A rapid recovery

Where is most of the innovation taking place according to the discussion on small cap companies?

• In international markets

• In large tech companies

• In small companies in industrial America

• In government research labs

How is the political environment expected to affect small cap companies?

• It will be stable and supportive

• It will be volatile

• It will lead to increased regulations

• It will have no impact