The lengthy surge in small-cap stock performance has delighted investors during an otherwise bleak market environment, but some Wall Street experts now say the rally is nearly exhausted, Dow Jones Newswires reports.
During what is seen as a five-year run-up to a new Russell 2000 index record of 623.86, an investor would have pocketed an average annual 7.74% gain while the Russell 3000 index slumped 0.98% during the same period.
Investment experts like Liz Ann Sonders, chief investment strategist at
Experts say the small-cap rally, poised to enter its sixth year, is now running on borrowed time and advise investors to brace for downturn. Based on statistical information, small-cap stocks are also predicted to wither at the beginning of economic recoveries. Stabilizing interest rates suggest that an economic recovery is around the corner.
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