Experts predict a potential rally for small-cap stocks this year
- Small-cap stocks had a rough start to 2024
- Tom Lee expects the Russell 2000 to reach as high as 3,000 points by the end of 2024
- Small-cap stocks remain Tom Lee’s favorite sector for 2024
- Small-cap stocks are still considerably discounted compared to large-cap stocks
- Jill Carey Hall and Nicolas Woods also have a bullish view on small-caps for 2024
Small-cap stocks have had a rough start to 2024, but experts believe they could still shine over the rest of the year. Tom Lee, head of research at Fundstrat Global Advisors, expects the Russell 2000, a small-cap equity gauge, to reach as high as 3,000 points by the end of 2024. This is more than 50% above the index’s current level. Lee believes that small-cap stocks are still considerably discounted compared to large-cap stocks, making them an attractive investment. Jill Carey Hall and Nicolas Woods from BofA Global Research also share a bullish view on small-caps, predicting that 2024 will be the first year they beat their large-cap counterparts since 2016. Historical data shows that small-cap stocks tend to outperform during election years, further supporting the positive outlook for small-caps in 2024.
Public Companies: S&P 500 (SPX), Russell 2000 (RUT), iShares Russell 2000 ETF (MX:IWM), SPDR S&P 500 ETF Trust (SPY), BofA Global Research (), Dow Jones Industrial Average (DJIA)
Private Companies:
Key People: Tom Lee (Head of Research at Fundstrat Global Advisors), Jill Carey Hall (Strategist at BofA Global Research), Nicolas Woods (Strategist at BofA Global Research)
Factuality Level: 7
Justification: The article provides information from multiple sources, including Tom Lee from Fundstrat Global Advisors and Jill Carey Hall and Nicolas Woods from BofA Global Research. It also includes data from FactSet. However, the article does not provide a balanced view as it only presents the bullish perspective on small-cap stocks and does not mention any potential risks or challenges.
Noise Level: 3
Justification: The article provides some analysis on the potential performance of small-cap stocks in 2024, but it lacks depth and relies heavily on the opinions of Tom Lee and BofA Global Research. There is also a lack of evidence or data to support the claims made in the article. Additionally, the article includes irrelevant information about the Dow Jones Industrial Average and the S&P 500 and Russell 2000’s performance on a specific day.
Financial Relevance: Yes
Financial Markets Impacted: Small-cap stocks
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the potential for a small-cap stock rally in 2024, which is relevant to financial markets. However, there is no mention of any extreme events or their impact.
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