There’s no denying that growth has remained top dog over the last few months as the U.S. and global economies have a turned a corner.
Stocks on the “growthier” side of the equation – from tech to healthcare – have surged more than the broader market since last November. And, lately, a more traditional source of growth has finally caught up to its sector-focused sisters.
We’re talking about small caps.
The smallest stocks have once again regained their place at the top of the growth pile. Several bullish factors have continued to push them forward. Even better is that many of these factors have no end in sight. For investors, the time to flex their small-cap muscle is now.
A Big Switch in August
Historically, small caps have been market leaders over long stretches of time. That relationship switched after the recession, when growth was slowing and investors continued to seek safety in large-cap blue chips. In fact, small caps started to chronically underperform the S&P 500 and the biggest of the big.