SMCI - IWM A Bargain As The S&P 500's P/E Hits 21x
2024-04-08 09:27:16 ET
Summary
- Small caps have been relatively weak in 2024, but the iShares Russell 2000 ETF (IWM) is still a buy based on valuation and its diversified exposure.
- The first Fed rate cut is often a bullish catalyst for small caps, indicating a more positive outlook in the intermediate term.
- Small caps have lower valuations compared to large caps and a positive inflection in earnings could boost sentiment for IWM.
- Now in its third-longest drawdown since 1985, an easing cycle could benefit IWM while its technical situation is decent.
Small caps have been quiet so far in 2024. Scanning the year-to-date ETF performance heat map, domestic small stock funds are about flat. Despite being aided by the meteoric rise in Super Micro Computer ( SMCI ), the iShares Russell 2000 ETF ( IWM ) is barely in the black. The S&P SmallCap 600 Index, which includes a profitability screen, is actually fractionally down so far in 2024. ...
IWM A Bargain As The S&P 500's P/E Hits 21x