Small-Company Stocks Offer Hope

Summary


NEW YORK Even as Wall Street skids lower almost by the day, and the major indexes have touched the levels of a bear market, some analysts are actually finding some signs in the performance of small- company stocks that might be pointing to the early stages of a much broader recovery.

Small-cap stocks are now doing better than the overall market and that has some analysts hopeful. These stocks typically get knocked lower during tough economic times as investors look to safer investments, but historically are the first to rise when the economy rebounds.

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Small-Company Stocks Offer Hope

In the year following the end of each of the past 10 recessions, small stocks rose an average of 28 percent compared to 19...

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