History Says Small-Cap Growth Stocks Could Soar: Here Are 2 to Buy Now

We're over a year into a new bull market, but contrary to previous market cycles, small-cap stocks are not performing nearly as well as large-cap ones.Small caps have historically trounced the return of the S&P 500 coming out of bear markets, but since the end of the most recent downturn in 2022, the small-cap focused Russell 2000 is up 24%, while the large-cap weighted S&P 500 is up 50%. This runs counter to the Russell 2000's performance in previous bull markets. In the five-year period following the 2002 and 2008 bear markets, the Russell 2000 outperformed the S&P 500 by an average of 61%.The returns of different asset classes and even specific industries can follow patterns that are tied to broader economic trends, such as interest rate cycles or consumer spending patterns. But if a company shows strong growth, its share price will certainly climb over the long term.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool