What’s Wrong With Small Caps?

RBC’s Jonathan Golub and team note that “changing valuations, not changing fundamentals” are behind the wreckage in the small-company Russell 2000 this year: Small caps have outperformed their larger peers throughout the recovery. However, since mid-March this trend has reversed, with large caps rising 5.9% (excluding dividends) while small caps have fallen 5.7%…The recent underperformance largely [...]