Russell 2000 Forward P/E vs. Subsequent 10-Year Annualized Returns

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

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

Small-Caps – Trailing 12-Month Russell 2000 Return

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

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

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

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

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