When To Buy Small Cap Funds Review

Market cycles of outperformance for small-caps vs. large-caps last about on average.

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

When large-caps have dominated for a long period—as they have for over a decade—the can widen significantly. Market cycles of outperformance for small-caps vs

Improving like rising GDP and falling unemployment often signal it is time for small-caps to outperform. 2. The Interest Rate Signal When large-caps have dominated for a long period—as

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

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