Why Small Cap Stocks May Never “Recapture Their Magic”

Small cap stocks have lagged for some time – and the author of today’s article argues that these stocks, which historically have seen long periods of outperformance relative to large cap stocks, may be destined to underperform indefinitely. More specifically, he states that “there may have been structural changes in the economy and the way investment dollars are allocated that suggest small caps may never recapture their magic.” What are these structural changes that may have permanently hindered the performance of small caps? CLICK HERE.