US Small-Cap Stocks Suffer Worst Performance in Over 20 Years
US small-cap stocks are currently experiencing their worst run of performance relative to large companies in more than two decades. This trend highlights how investors have been chasing after mega-cap technology stocks, while smaller groups have been weighed down by high interest rates. The Russell 2000 index, a key gauge of small-cap stocks, has risen only 24% since the beginning of 2020, lagging far behind the S&P 500’s gain of over 60% during the same period. This significant gap in performance disrupts a long-term historical norm where fast-growing small-caps had typically delivered higher returns for investors despite their higher volatility.
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