While mega-cap tech stocks surged over the last few years, small-cap stocks have been all but forgotten.
Mired by high interest rates and an unpredictable economy, America’s smaller businesses have struggled for years. This might come as a surprise, but small-cap stocks are currently in their second-longest period of underperformance since the Great Depression.
That all started to turn around late last summer, shortly before the Federal Reserve’s first interest rate cut signaled a change in policy. Yet despite changing tides, the small-cap Russell 2000 index still ended the year with just a little over half the return of the S&P 500.
Now, we’re entering a whole new year. And one chart lays out the opportunity before us quite plainly…
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