US small caps outperform in global meltdown

Amid the widespread stock-market wreckage arising from the Russian-Ukraine conflict in February, there was one notable survivor: US small caps actually posted gains for the month, eclipsing the broad US market and most markets elsewhere.

This resilience is particularly striking given its prolonged losing streak for most of the past year as market leadership rotated away from cyclical, value-oriented stock groups toward more growth-centric segments. Despite its standout showing in February, particularly versus the broad US and European indexes (see chart below), the Russell 2000 remains among the worst performers for the past three months and longer-term.

You can now read the full blog post at the link below