Many investors are jumping into small cap stocks seeking what we call “lottery ticket payoffs.” But we think this is a potential trap that investors need to be wary of. Head of Quantitative Strategies Michael Hunstad, Ph.D., explains
While there is still a long path to recovery, global June flash PMIs confirmed we have passed the trough as contraction eased. The U.S. Employment report will be released next week, and the pressure is on for Britain and Japan to come up with a deal.
Sharp improvements in global manufacturing and service sector activity was balanced with evidence of a still weak labor market as the virus notably strengthened in the U.S. Warnings from the Federal Reserve that some large U.S. banks may push minimum capital levels in worst-case pandemic scenarios underscored virus economic headwinds, while reports of increased trade tensions added to risk asset pressures.