Small Caps: Out Of The Tunnel?

Two years ago, small-capitalization stocks were the darlings of investors. Last year, they stalled, and now they're trailing the pack. The group has suffered in 1995, as skittish buyers moved to the comfort of familiar blue-chip names and as the weak dollar aided larger companies with foreign revenues. Accordingly, such measures as the Russell 2000 Small Stock Index have badly underperformed the Standard & Poor's 500-stock index.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.