Bloomberg Surveillance · Wednesday, September 2, 2026
Sebastian Page expressed a positive outlook on small and mid-cap stocks, noting their participation in the AI trade and decent growth impulse from a strong US economy. He highlighted their attractive valuations compared to large caps and their counterintuitive resilience during market sell-offs.
“We like the broadening trade. We've been long the small and mid caps for over a year. There is a convergence in the earnings growth at some point between small and mid caps and large caps.”
“You do have an economy in the US to the prior question that's growing at maybe 6% nominal. That's decent growth impulse for small caps.”
“And the valuation, well, if you look at the S&P 600, which has the companies that are generating positive earnings, that index relative to large cap in terms of its price earnings ratio is still in the bottom 30%. of its long-run historical range. So you have a valuation advantage.”