Small caps catch up with large for 2020

Russell 2000 low was -42% YTD in March, was lagging large cap. But on Nov 9th hit 0% growth YTD. Now has caught up with the S&P 500 at about +13% YTD.

That’s even though stocks overall have grown pricier relative to their earnings. The Russell 2000 traded at the end of November at 18.1 times its projected earnings over the next 12 months, above an average since 1985 of 15.3, according to BofA. But the relative discount for small-caps in recent months was the largest since 2001.