Rotate or stay? Playing the small cap rally’s next phase

Since the market bottomed in late March, the S&P/ASX Small Ordinaries Index has soared over 40%. However, it's evident that the rebound is thus far two-tiered in nature; e-commerce and technology-oriented stocks have done much of the heavy lifting and left nearly everything else in their wake.

The key question for investors now is whether the dichotomy in sector performance presents an opportunity to take profit from the exuberantly expensive 'online' stocks and redeploy it into the laggards... or is it the case that the world really has changed and the COVID-19 winners will keep on winning?

Here, Gary Rollo of Montgomery and Chris Stott from 1851 Capital discuss this thematic and whether its time for investors to make a big portfolio pivot into the small caps which have been behind.

Visit Livewire Markets to access the video and edited transcript for this episode.

Note: This episode was recorded on 9 September 2020.