Eric Schultz

Mar 5, 2024 | morningstar.com | Eric Schultz |Chris Tate |Drew Carter

Now could be a good time to consider US small caps. Contrary to a broad academic consensus that small-cap stocks tend to outperform large caps, small caps have trailed large caps for an extended period, which suggests they could rebound. Valuations are compelling, too. In terms of price/earnings, small-cap valuations are low relative to their own history and large caps.