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

Relationship Between Relative Fwd PE of Russell 2000 vs. Russell 1000 and Subsequent 10-Year Annualized Relative Returns