Small caps should also get a boost from interest rate cuts, which typically translate to disproportionately large gains for the group.
That helps confirm what investors are realizing: small caps are the place to be.
When large caps sneeze, the market catches a coldThe small-cap breakout has coincided with large technology stocks breaking down.
Small caps also tend to have less of an international presence than their larger peers, so they don't miss out as much when converting overseas profits to dollars.
The small-cap index is closely tied to economically sensitive parts of the market, which should continue to participate in this rally.
Persons:
—, chartmaster, BMO Capital Markets David Keller, who's, Russell, David Keller, StockCharts.com, Keller, you've, he'd, Keller didn't
Organizations:
Service, Tech, Nvidia, Meta, Business, BMO Capital Markets, BMO Capital, BMO, Therapeutics, Myriad Genetics, Holdings