Value vs. Growth and Small Caps vs. Large Caps The rally in small caps is a strong bullish signal, but it has not yet been confirmed by a rebound in value vs. growth. Image: BofA Research Investment Committee
Small Caps – Russell 2000 Distance from 200-Day Moving Average Is there is too much optimism built into small-caps? Image: Bespoke Investment Group
Flow into U.S. Small Cap Stocks U.S. small cap stocks saw their second-largest inflow ever. Image: BofA Global Investment Strategy
Small Caps vs. Large Cap Relative Performance Is a new small cap outperformance cycle beginning? Image: BofA US Equity & Quant Strategy
Small Cap Stocks – Russell 2000 Total Return Bases on President/Congress Since 1979 Historically, small caps’ highest average returns have been in period of Democratic President with a Democratic Congress. Image: BofA US Equity & Quant Strategy
World Small Caps/Large Caps and U.S. 10-Year Government Bond Will small-caps continue outperform large-caps? Image: Nordea and Macrobond
Flow – U.S. Small Cap Stocks U.S. small cap stocks are soaring, as positive news on a COVID-19 vaccine has fueled optimism about an economic recovery next year. Image: BofA Global Investment Strategy
Small Cap Stocks – Russell 2000 Index as a % of Its 200-Day Moving Average Are investors too optimistic, as small-cap stocks are now very stretched? Image: BofA Global Research
FMS Investors – Net % Think Small Caps will Outperform Large Caps Historically, small caps tend to outperform large caps after recessions. Image: BofA Global Fund Manager Survey
Stocks – Small Caps vs. Large Caps Since late March, the bull market has followed the typical recession playbook, with small caps outperforming large caps. Image: Morgan Stanley Research