95 days ago • Posted by Charles-Henry Monchau

Russell 2000 vs. S&P 500: still a long way to go despite recent outperformance

"Small & Mid caps have underperformed for over 2 Years, and there is still a long way to go back to trend (shown below). In addition, smid caps offer better exposure to an economic recovery, as a higher percentage of constituents are non-tech cyclicals vs. the SPX. The RTY is also expected to see higher sales and earnings growth into 2021, and revision trends for small and midcaps are already outpacing that of large caps. Finally, M&A is picking up and that has historically favored the group as well". - source: Jefferies 

Russell 2000 vs. S&P 500 relative performance