As parts of the U.S. (including Royce’s NYC offices) moved from a near-record-setting snowfall to spring-like temperatures in the space of a week, CEO Chuck Royce asks whether 2016’s downturn is signaling a similar dramatic change for small cap stocks.
I think so. In fact, as I write this entry in early February, New York City is enjoying spring-like temperatures. Yet little more than a week ago, Central Park received more than two feet of snow in less than 24 hours.
Like the weather, the stock market seems to have changed in the proverbial New York Minute, with January being an extraordinarily volatile and bearish month by any standard. The price of oil, still-plunging and unpredictable, seems to set the stage for each equity trading session—and the commodity has continued to make new lows as the new year rolls on.