Day: November 22, 2025

Small stocks have lagged large caps for years — can they beat the odds now?

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Small-cap stocks have lagged behind their larger counterparts for more than 20 years, leaving beleaguered small-cap investors to wonder if smaller stocks will finally start to outperform the large-caps. They offer what I call a “snapback” hypothesis for why small caps should now outperform: Large caps’ outperformance is stretched so thin it’s like a rubber band — ready to snap back.

Supporting this hypothesis is well-respected, as peer-reviewed academic research in the 1980s and 1990s found that, except for relatively short periods, small-cap stocks could be counted on to beat the large-cap S&P 500 SPX over the longer term.

‘I’ve always lived hand-to-mouth’: I’m 64. My father left me $400K from his 457(b) plan. My brother is suing me. How can I defend myself?

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Quentin Fottrell is MarketWatch’s Managing Editor-Advice Columns and The Moneyist columnist. You can follow him on Twitter @quantanamo.

Thank heavens for Fed Chair Jerome Powell

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Brett Arends is an award-winning financial writer with many years experience writing about markets, economics and personal finance. He has received an individual award from the Society of American Business Editors and Writers for his financial writing, and was part of the Boston Herald team that won two others. He has worked as an analyst at McKinsey Co., and is a Chartered Financial Consultant. His latest book, “Storm Proof Your Money”, was published by John Wiley Co.

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