By Scott Bauer
At a Glance
- Prior to COVID-19, lower rates from the Fed should have created an optimal opportunity for the Russell 2000 to outpace large-cap indices.
- The Russell 2000 flashed warning signs of an economic pullback throughout 2019.
Since early 2019, the Russell 2000, the primary index for small-cap stocks, has lagged mid- and large-cap benchmarks.
Many investors consider the Russell 2000 the most comprehensive indicator of the U.S. economy due to its breadth of industries as well as most companies' central exposure to the United States. In general, small-cap companies tend to