Skip to content
Feb 07 2024

Sizing-Up Small Caps

  • Feb 7, 2024

It’s too soon to know if the October low for small caps will stand, but it would have been a better, more buyable low if it had been accompanied by a recession. It’s all about “initial conditions.” Russell 2000 lows associated with recessions bottomed with a normalized P/E multiple nearly five points below that of the median multiple for non-recessionary lows—and subsequently gained an average of 185% versus +75%.


For full access, please enter your credentials.

About The Author

Doug Ramsey / Chief Investment Officer & Portfolio Manager