Small-cap stocks are primed to outperform large caps over the next 10 years
By Fred Imbert


The Russell 2000 has dropped more than 9% over the past year. The S&P 500, meanwhile is up slightly over that time period.

This gap has brought small-cap valuations to their most attractive levels in years relative to large caps, presenting investors with a big buying opportunity for the long haul.

“Valuations have limited short-term predictive power, but matter more over the long-term,” says one strategist. “The relative P/E today suggests that small caps should lead large caps over the next decade.”