“Is the Small Cap Rally Just Getting Started?”

“Is the Small Cap Rally Just Getting Started?”

Over the long term, small cap stocks have outperformed their large-cap peers.

According to data from 1936-2023, small cap stocks outperformed their large cap peers by 285 bps annually on average.

But over the last ten years, the large cap index has dominated….

And as a result, valuations for small cap companies look quite compelling.

At some point, small caps were bound to catch up.

And it looks like that “market rotation’ has started.

Over the past three years, the S&P 500 has trounced the Russell 2000….

But since early July, the Russell 2000 has been on a tear on an absolute basis and vs. S&P 500.

The million dollar question is this:

“Will the Small Cap Rally Continue?”

I think the answer is YES.

Here’s why:

Here’s one of my favorite small caps.

What is yours?