Small Cap Funds: When To Buy

: Historically, small-caps have outperformed large-caps in the months following a Federal Reserve interest rate cut .

When large-caps have dominated for a long period—as they have for over a decade—the can widen significantly. when to buy small cap funds

As the economy stabilizes and demand improves, smaller, more agile firms can see revenue and profit grow more sharply than their massive counterparts. when to buy small cap funds

While large-cap stocks often lead the charge during the very first stages of an economic recovery, small-caps historically hit their stride during . when to buy small cap funds

Buying when small-caps are trading at a deep discount (on a price-to-earnings or price-to-book basis) compared to large-caps can offer a "margin of safety" for long-term gains. 4. The 7-Year Commitment