Why Now Is the Time for Small Cap Stocks
Stocks have enjoyed a fantastic run of late, and leading the way higher is the small cap segment of the equity market. To give you a sense of just how much better small cap stocks have done versus their larger-cap brethren, consider that in the third quarter the benchmark small-cap measure, the Russell 2000 index, rose over 9%. Smaller, microcap stocks also did quite well, gaining nearly 8% in Q3. That compares quite favorably to the performance of stocks in the large cap S&P 500 index, which managed a gain of just 3.89% in the third quarter.
It’s well-known that when the economy is relatively weak, investors will turn to the fastest moving stocks out there seeking big returns. This is one reason why small caps have done so well of late. It’s also a big reason why small cap stocks in the emerging markets have outperformed.
Here then are five top-performing small cap mutual funds you can buy to take advantage of the small cap surge.