Employment data fell short of expectations, the market lowered expectations of the Fed's interest rate hike, a major negative factor for small-cap stocks subsided, and Royal Bank of Canada strategists tend to be optimistic about US small-cap stocks. The research team led by Lori Carvasina currently maintains a neutral rating for small-cap stocks compared to large-cap stocks, but the research report points out that small-cap stocks are undervalued and investors' positions are extremely bearish, compounded by improvements in expected profits, and the attractiveness of the investment environment continues to rise. The agency said that if it wants to recommend oversized small-cap stocks and abandon large-cap stocks, more supporting signals are needed.

Employment data fell short of expectations, the market lowered expectations of the Fed's interest rate hike, a major negative factor for small-cap stocks subsided, and Royal Bank of Canada strategists tend to be optimistic about US small-cap stocks. The research team led by Lori Carvasina currently maintains a neutral rating for small-cap stocks compared to large-cap stocks, but the research report points out that small-cap stocks are undervalued and investors' positions are extremely bearish, compounded by improvements in expected profits, and the attractiveness of the investment environment continues to rise. The agency said that if it wants to recommend oversized small-cap stocks and abandon large-cap stocks, more supporting signals are needed.