With the Fed swiftly raising rates and the slowing of economic growth, small-cap stocks have gotten pummeled. The Russell 2000 has declined 32% from its November 2021 high through June…
Tag: small caps
A Comeback for America’s Smallest Stocks
Despite grim economic news, share prices of small U.S. companies are rising rapidly and fueling a debate among investors about how much longer it can keep up. This according to…
Small Caps’ Collapse and What’s Behind It
A recent article in CityWire examines why the small-cap Russell 2000 index has underperformed its large-cap counterpart over the long-term, contrary to the widely accepted view introduced by Nobel laureates…
Stock Market Rout ‘Eviscerated’ Small-Caps
Small-cap stocks have taken a particularly strong beating over the past month, according to a recent article in The Wall Street Journal. “Companies in the small-cap category, which typically have…
“Golden Cross” Price Pattern Forming Small Caps
A MarketWatch article from earlier this month discussed the possibility of a “golden cross” price pattern to emerge in the Russell 2000 index, the benchmark of small cap stocks, which…
Small Caps Stall Amid Weaker Economic Data
Small cap stocks, which surged after President Trump’s election and through last summer, have stalled a economic data has weakened and investors have begun bracing for a possible recession. This…
Michael Burry of The Big Short Sees Passive Investing Bubble
Michael Burry, whose bet against mortgage securities before the 2008 crisis was immortalized in the film “The Big Short” sees another contrarian opportunity in what he characterizes as a “bubble”…
Small-Cap Troubles Signal Economic Worry
Small company stocks have been hit hard this year, and “investors are beginning to wonder if that is a taste of what is to come with the wider market.” This…
The Size Factor: A Case Against Small Caps
Although investors expect to be compensated for the higher inherent risk associated with small cap stocks, historical returns haven’t supported this thesis, according to an article in CFA Institute that…
Rules for Small-Cap Investing
An article in Bloomberg last month profiles Samantha Lau, co-chief investment officer of small and SMID growth strategies at AllianceBernstein. Lau subscribes to some basic rules of small-cap investing, including:…