RNSC - Hope Springs Eternal Again For Small-Cap Equities
2024-03-25 15:00:00 ET
Summary
- Small-caps in recent years have fallen well short of expectations that a risk premium in lesser companies would eventually deliver superior returns over the broad market, a.k.a. large-cap stocks.
- But one aspect of small caps that’s a hardy perennial: periodic revivals in forecasts that this lagging corner of the stock market is poised to run hot.
- There’s also a school of thought that favors rethinking the standard approach to small-cap indexing as a superior tool for tapping into the small-cap premium.
The stock market is soaring and the rising tide has lifted small-cap shares, but if you've been expecting a hefty premium (or any premium) in smaller firms, well, there's still plenty of disappointment to process....
Hope Springs Eternal, Again, For Small-Cap Equities