In this article, we utilise historical data from the Russell 1000 & 2000 Indices to investigate this phenomenon. We then examine the returns of the Russell 1000 & 2000 during Black Thursday 2020 and their potential future outcomes.
Did you know that US smallcap stocks are often perceived as a reliable economic barometer of US economic activity? In the aftermath of an economic recession, small-cap stocks typically outperform large-cap stocks.
This may be due to several factors such as investors’ renewed appetite for risk or small caps’ greater sensitivity to economic developments.
