Morgan Stanley Backs Small-Cap Rotation as Goldman Says Go Big
- Morgan Stanley sees smaller companies extending outperformance
- Goldman sees large-cap stocks as better bet ahead of earnings
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A promising October for small-cap stocks hit a speed bump Monday as a powerful rally in tech giants left everyone else behind. For investors seeking advice on whether now is the time to rotate asset classes, two prominent Wall Street prognosticators are split.
Goldman Sachs Group Inc. strategist David Kostin says the backdrop favors going big, with the five largest technology firms poised to report earnings growth in the third quarter amid a drop in profit for members of the small-cap Russell 2000 Index.