FYI: Small-cap stocks roared out of the gate for the first two months of 2019, but have stumbled since. Their upcoming performance will be important not just to investors in the sector but to the market’s overall health.
Through March 1, the small-cap Russell 2000 index had returned more than 18%, versus about 12% for the large-cap S&P 500. That story has reversed over the past two weeks: The S&P 500 is up about 0.5%, while the Russell has declined over 2%. That’s the indexes’ biggest performance divergence of the year.
Small-caps’ recent slump has coincided with a slew of less-than-stellar data points about the U.S. economy. The Russell 2000 is made up of more-domestically-focused companies than the S&P 500, whose constituents earn about 40% of their revenue abroad.
Regards,
Ted
https://www.barrons.com/articles/how-to-play-small-cap-stocks-now-51552699467?mod=hp_LATEST
