“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:

  1. 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.

  2. 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.”
  1. 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.

Is it time to give small-cap stocks a fresh look? Discover Fenimore’s small-cap strategy and what makes us different.

Thomas O. Putnam founded Fenimore in 1974 with two passions: conduct in-depth, firsthand, independent investment research and serve investors with excellence and integrity. Today Fenimore Asset Management, manager of the FAM Funds, is nationally recognized, yet locally rooted and independently owned. Decades have passed, but our approach endures.

Securities offered through Fenimore Securities, Inc. Member FINRA/SIPC,
and advisory services offered through Fenimore Asset Management, Inc.

© Fenimore Asset Management. All Rights Reserved.