It was a tale of two stock markets in 2023, with large-cap indices nearing record highs, while the shares of smaller companies struggled to find steady footing. Ongoing geopolitical uncertainty didn’t help, but if one had to name a single factor explaining the divergent performance, most observers would point to interest rates, which have surged manyfold from their pandemic trough that ended in the latter half of 2021.
History suggests that small-cap companies will again have their day in the sun. Reasons for optimism include expectations for a softening interest rate environment and the undeniable global trend toward greater electrification, which will continue to present opportunities to companies of all sizes. As is always the case with financial markets, timing is the hardest thing to predict.
Through all of this, the Canadian Securities Exchange maintained steady growth in its issuer base in 2023, while also…
