FYI: Until September, 2018 was on track to be small-caps’ year.
A growing economy and a resilience to a stronger dollar and higher tariffs put the spotlight on smaller, U.S.-focused companies. The Russell 2000 index hit an all-time high on Aug. 31, notching a 14.3% year-to-date return versus the S&P 500’s 9.9% return.
Then things got ugly. As investors fled stocks more broadly, concerns over small-caps grew particularly acute. Mounting cost pressures and concerns over slowing growth led many investors to simply lose faith in small-cap profit margins and earnings expectations, says Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets.
The Russell, which includes 2,000 U.S. companies with a median market value of $964 million, is now off 17.4% from its Aug. 31 record close, and is down 5.6% on the year versus the S&P 500’s 0.9% decline.
Regards,
Ted
https://www.barrons.com/articles/small-cap-stocks-fall-finding-opportunities-51544810146?refsec=funds
