The Russell 2000 Just Hit a New All-Time High. Is it Time to Buy This Small-Cap ETF?

The stock market has surged over the last two years, driven by the artificial intelligence (AI) boom, falling inflation, and a resilient economy in the face of high interest rates.However, while the S&P 500 (SNPINDEX: ^GSPC) surged, one corner of the stock market was left behind. Small-cap stocks have badly underperformed since their peak during the pandemic, as they fell sharply in the bear market of 2022, as the highfliers that had jumped during the pandemic fell the furthest.Through 2023 and 2024, small caps have also been left behind as investor attention has been focused on large-cap tech stocks like Nvidia and others that have soared on optimism for the AI revolution. However, small caps finally seem to be making up for lost ground, as the best-known small-cap index, the Russell 2000, just reached a new all-time high for the first time since 2021.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool