US small-cap equities now have the potential to outperform

After a near-record sell-off in February, US small-cap equities now have the potential to outperform as the US economy begins to stabilise. Small-cap stocks have historically been the best way to get exposure to US recoveries: on average, from the bottom of bear markets since 1949, the Russell 2000 has generated annualized total returns of 58% in the first year following the market bottom, 26% over three years and 21% over five years, while outperforming the S&P 500 by 16%, 5%, and 4%, respectively.  Many smaller companies are at the epicenter of secular growth themes fueled by technolog...