Number of Small-Cap M&A Deals At 10-Year High

Number of Small-Cap M&A Deals At 10-Year High The number of small-cap deals is expected to continue to grow, because CEOs are under pressure to increase profits Image: Legg Mason

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

S&P 500 Earnings Revisions Breadth

S&P 500 Earnings Revisions Breadth Earnings revisions breadth for both large and small caps has returned to negative territory, which means that the overall sentiment and expectations for future earnings have worsened. Image: Morgan Stanley Research

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