The Russell 2000 Just Hit a New All-Time High. Is it Time to Buy This Small-Cap ETF?
Small-cap stocks have badly underperformed since their peak during the pandemic, as they fell sharply in the bear market of 2022, as the highfliers that had jumped during the pandemic fell the furthest. Through 2023 and 2024, small caps have also been left behind as investor attention has been focused on large-cap tech stocks like Nvidia and others that have soared on optimism for the AI revolution. Small caps have surged since the election, as investors have bet that President-elect Donald Trump and a Republican Congress can enact a set of potentially business-friendly policies like lower taxes, less regulation, and higher tariffs.