Small Cap Equity Positioning

Small Cap Equity Positioning Allocation to small-cap equities, ranking in the 55th percentile, is within a moderate range rather than at extreme levels. Image: Deutsche Bank Asset Allocation

Small Cap Stocks vs. Large Cap Stocks Relative Performance

Small Cap Stocks vs. Large Cap Stocks Relative Performance Is it time for U.S. equity investors to increase their allocation to small-cap stocks compared to large-cap stocks in their portfolio? Image: BofA US Equity & Quant Strategy

Performance – Large Cap vs. Small Cap

Performance – Large Cap vs. Small Cap Given attractive valuations, is it still possible for U.S. small caps to outperform U.S. large caps in 2024? Image: Goldman Sachs Global Investment Research

Flow into U.S. Small Cap Stocks

U.S. Small Cap Fund Flows The strong inflows to U.S. small-cap funds reflect a positive outlook on the potential of small-cap stocks as an investment opportunity. Image: BofA Global Investment Strategy

Small Cap Stocks – Relationship Between Relative Fwd P/E of Russell 2000 vs. Russell 1000 and Subsequent 10-Year Annualized Relative Returns

Small Cap Stocks – Relationship Between Relative Fwd P/E of Russell 2000 vs. Russell 1000 and Subsequent 10-Year Annualized Relative Returns Investing in small-cap stocks during periods when they are trading at a significant discount to large-cap stocks may present attractive opportunities for long-term investors. Image: BofA US Equity & Quant Strategy

U.S. Small Cap Stocks – S&P 600 / S&P 500

U.S. Small Cap Stocks – S&P 600 / S&P 500 U.S. small business confidence is deteriorating, which does not bode well for U.S. small-caps, but relative valuations remain attractive. Image: BCA Research