Reported about 1 year ago
Consistently investing in the stock market is shown to create wealth over time, with stocks outperforming other asset classes. Currently, a significant valuation gap between large-cap and small-cap stocks, as indicated by differences in forward P/E ratios, suggests a potential opportunity for investors. Historically, when the valuation gap has been this wide, small-cap stocks have outperformed large-cap stocks. Factors like heavy weighting of big tech stocks and possible future interest rate changes indicate a potential shift towards small-cap outperformance, making small-cap index funds like SPDR S&P 600 Small Cap ETF attractive investments.
Source: YAHOO