Russell 2000 Forward P/E vs. Subsequent 10-Year Annualized Returns Should long-term investors increase their allocation to U.S. small-cap stocks, given the potential for 9% annualized ten-year returns suggested by the absolute forward P/E for the Russell 2000? Image: BofA US Equity & Quant Strategy
Russell 2000 Technology Sector Relative to Total Index U.S. small-cap technology stocks have exhibited a noteworthy level of outperformance within the universe of U.S. small-cap stocks, which can be attributed to higher growth potential and the ability to innovate and disrupt traditional industries. Image: Morgan Stanley Wealth Management
Modeled Forward Russell 2000 Returns Conditional on Coincident Real U.S. GDP Growth The performance of small-cap stocks is linked to economic conditions. Weak U.S. economic growth may affect their returns, while strong growth offers potential for solid returns. Image: Goldman Sachs Global Investment Research
Small-Caps – Trailing 12-Month Russell 2000 Return Goldman Sachs expects the Russell 2000 small-cap index to return 15% in the next 12 months, which suggests a positive outlook for small-cap stocks. Image: Goldman Sachs Global Investment Research
Performance – Russell 2000 vs. S&P 500 Seasonality Small caps historically tend to outperform the S&P 500 from December to February. Allocating a portion of the portfolio to small cap stocks during this time may benefit investors. Image: Goldman Sachs Global Investment Research
Russell 2000 Returns After Last Rate Hike Should equity investors favor U.S. small-cap stocks following the last Fed rate hike? Image: BofA Global Investment Strategy
Performance – Ratio of Russell 2000 Index to Russell 1000 Index The underperformance of small caps relative to large caps raises questions about their capacity to adapt to rapid changes in the economic landscape. Image: Morgan Stanley Wealth Management
Relative Performance – Nasdaq 100 vs. Russell 2000 The frenzy surrounding artificial intelligence is driving U.S. tech stocks back to high levels relative to small caps. Image: BofA Global Research
S&P 500 vs. Russell 2000 – Trailing 12-Month EPS Small cap earnings tend to lead large cap earnings. Image: BofA Global Investment Strategy
Russell 2000 / S&P 500 vs. ISM Manufacturing PMI (Leading Indicator) The performance of U.S. small caps relative to the S&P 500 suggests a decline in the ISM Manufacturing PMI. Image: Morgan Stanley Research
Russell 1000 Value Relative to the S&P 500 Should investors consider overweighting value stocks relative to the S&P 500? Image: BofA Global Research