QARP - Can Smaller Stocks Recover From Coronavirus Blow?
By Samantha S. Lau
Small-cap stocks were hit harder than large-caps in the coronavirus sell-off. But given the extreme market dislocations, select smaller companies with innovative advantages could offer investors a surprising source of diversification for the uncertain times ahead.
Investors in small-cap stocks have had a particularly rough ride since the pandemic began. Even after recovering from a late-March trough, the Russell 2000 Index of US small-cap stocks was down 24% since the beginning of the year through May 15, while the Russell 1000 Index of US large-cap stocks has fallen by 11%. When