Mike Balkin, partner and co-portfolio manager of the William Blair Small Cap Growth strategy, explained why he believes the time is right for small caps on CNBC’s “Closing Bell.”
Small caps have underperformed large caps for most of the past decade, Balkin highlighted, adding that historically when interest rates have gone up, small cap stocks have performed well.
“You‘ve had a flight to safety over the past decade,” Balkin said in the CNBC interview. “People have gone into large cap stocks, dividend-paying stocks—anything where they think that they can get a yield.”
This trend has been a detriment to small caps, but he sees this trend reversing as rates start to go up. Balkin also discussed three small cap companies he likes and why.
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