A Diagnosis for the Small-Cap Stock Sell-Off
This article is for subscribers only.
"Take two aspirin and call me in the morning."
If only the pain of investing in small-cap stocks this year were so easily remedied. Comparing their performance to the gains posted by the largest companies, our throbbing headache has morphed into full-blown schizophrenia. The Russell 2000 Index of companies with market capitalizations averaging less than $2 billion lags the S&P 100 Index of largest companies by a stunning 1,112 basis points this year. (A basis point is 0.01 percentage points.) Oh, the pain.