Goldman Sachs Executive Says It’s a Good Time To Invest in Small-Cap Stocks – Here Are the Areas He’s Focused On

Goldman Sachs Executive Says It’s a Good Time To Invest in Small-Cap Stocks – Here Are the Areas He’s Focused On

Goldman Sachs Managing Director Greg Tuorto thinks market conditions look healthy for small-cap stocks. In a new interview, Tuorto notes that small caps have had a rough 3-4 years since the US Federal Reserve started raising rates, and they haven’t yet witnessed the expected tailwind since the Fed started to cut. “We’re starting to see a nice earnings cycle in small caps. We think it’ll be a lot more powerful than the large-cap earnings cycle. We also think they’re a lot cheaper. About 25 – 30 percent cheaper than large-caps. Plus, you have the optionality in the IPO market, which should help. And M&A is starting to pick up, which is also a really nice, you know, tailwind for the small-cap market.” In terms of the small-cap space, Tuorto argues that the “picks and shovels” side of AI is a smart way to secure gains on a longer timeline. “I think that you look at semiconductors. Semiconduc

Source: https://dailyhodl.com/2026/04/27/goldman-sachs-executive-says-its-a-good-time-to-invest-in-small-cap-stocks-here-are-the-areas-hes-focused-on/