“America’s Small Stocks Are Leading the Market’s Charge” – The Wall Street Journal published this noteworthy article on 12/13/2020. Here are our key takeaways:
- Small businesses and our economy = Small-cap stocks tend to do well in a recovering economy. The promise of COVID-19 vaccines has driven expectations for an improved economy and resuscitated industries that have suffered significantly in 2020.
- A record month = The Russell 2000 Index, comprised of small businesses, just recorded its best month ever in November. And it has continued to perform well in December.
- According to the article, “The Russell 2000’s gain for the year surpassed that of the S&P 500 on Tuesday for the first time in 2020, according to Dow Jones Market Data.”
- Attractive stock prices = Even with this record performance, the overall prices of small-cap stocks are reasonable – especially when compared to their large-cap counterparts.
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