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Posted by on Feb 15, 2017 in Cornerstone Investment Partners, Small Cap Market Review

Weekly Small Cap Market Review: February 6 – February 10

Weekly Small Cap Market Review: February 6 – February 10

By Mark Spatt, CFA, Investment Analyst at Cornerstone Investment Partners, sub-advisor of the AdvisorShares Cornerstone Small Cap ETF (NYSE Arca: SCAP)   It’s February, and I’ll excuse you if you find the financial news, including this newsletter, somewhat one-note at this point. When the White House Press Secretary’s daily press conference serves as must-see TV (while “The Blacklist,” which is a very fun show, languishes unwatched on the DVR), it seems obvious what is driving the market’s daily gyrations. This is particularly true in small cap, an asset class with outsized exposure to changes in regulation, taxes, and domestic economic policies. The small cap market, as defined by the Russell 2000 Index, was up 0.8% overall during the week. Key news from the week included an announcement that the White House would release a tax plan in the coming weeks, which helped to energize the recent reflation trade. The EIA announced that crude oil inventories increased by significantly higher levels than expected, yet crude prices increased, as the market...

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Posted by on Feb 8, 2017 in Cornerstone Investment Partners, Small Cap Market Review

Weekly Small Cap Market Review: January 30 – February 3

Weekly Small Cap Market Review: January 30 – February 3

By Mark Spatt, CFA, Investment Analyst at Cornerstone Investment Partners, sub-advisor of the AdvisorShares Cornerstone Small Cap ETF (NYSE Arca: SCAP)   I write to you from Atlanta, a deflated city. If you shut off the television last Sunday night right after Lady Gaga’s drone-assisted halftime show (with Pepsi as the sponsor, even the drones were against Atlanta), you might have been surprised to see a triumphant Tom Brady on the front page of the newspaper. My on-the-field (or on-the-bench) football career ended after freshman year of high school, but the Falcons seemed to get soft in the second half and played to not lose, versus playing to win. It just goes to show that performance can turn on a dime, and discipline is key for success in any field. With another busy week, the small cap market, as defined by the Russell 2000 Index, was up 0.5% overall, but had two wildly divergent days of performance. Monday was down 1.3% on the uncertainty arising from the response to...

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Posted by on Feb 1, 2017 in Cornerstone Investment Partners, Small Cap Market Review

Weekly Small Cap Market Review: January 23 – January 27

Weekly Small Cap Market Review: January 23 – January 27

By Mark Spatt, CFA, Investment Analyst at Cornerstone Investment Partners, sub-advisor of the AdvisorShares Cornerstone Small Cap ETF (NYSE Arca: SCAP)   Last week was quite busy, but I expect that we will rarely get the opportunity to say something otherwise this year. President Trump had a very active first week in office, pulling out of the Trans-Pacific Partnership (“TPP”), calling for $1 trillion of spending on infrastructure projects, pushing for a border wall with Mexico, and suggesting he could cut corporate regulations by at least 75%. Along with actions taken just before and after the inauguration to repeal key elements of the Affordable Care Act, the President has acted quickly, decisively, and sometimes without deep congressional support, on a number of key campaign promises. The small-cap market, as defined by the Russell 2000 Index, was up 1.4% overall for the week, as the President’s actions gave increasing confidence to the market that expected growth-oriented economic policies will be implemented. Within the Index, Materials (+3.5%), Industrials (+2.3%), and Financials...

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