In this episode, Erika Pagel and Sid Ahl are joined by Brown Advisory’s David Schuster, portfolio manager of the firm’s Small Cap Fundamental Value strategy, for a discussion about the surprising resilience of capital markets in the face of a challenging economic environment. The economy shakes, but the market shrugs. The team discusses how the market is currently climbing an especially daunting wall of worry, and how investors are shrugging off multiple examples of geopolitical and financial concerns around the world. When macro conditions are uncertain, a banker’s approach to valuation can help. David, a former investment banker, has always brought a banker’s mentality to valuing smaller companies by breaking down their assets and operations into components that can be more accurately assessed. He offers examples to show how this approach can be especially helpful when markets are behaving in surprising ways. Other topics: The team also discusses how small caps are currently valued at historically low levels and what might cause their fortunes to turn; how bearish sentiment around the state of the U.S. consumer may open up investment opportunities; and how the work-at-home movement continues to impact the commercial real estate market. As always, we welcome your thoughts, feedback and questions. MORE ON THIS TOPIC The Equity Beat: Yes, Virginia, This is a Bull Market Is it time to pop open the champagne? Perhaps. We'll see, but you can hear what Eric Gordon thinks about this current trend in his latest Equity Beat blog post. Read more > 2023 Asset Allocation Perspectives and Outlook We are pleased to share Brown Advisory’s 2023 Outlook. Each year, the Annual Outlook report assesses the current investment landscape and discusses some of the main themes being expressed in client portfolios. 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