| Abstrakt: |
The Russell 2000, an index of small and midsize companies, has underperformed the S&P 500 in the new year, raising questions about the sustainability of small-cap stocks' gains. Small stocks were initially affected by recession worries and higher interest rates but saw a resurgence in late 2023 due to optimism about rate cuts. However, hotter-than-expected economic data in 2024 has caused investors to push back their expectations for rate cuts, leading to concerns about small-caps' performance. Some investors remain hopeful, citing relatively cheap valuations and potential earnings growth. [Extracted from the article] |
