Small Cap Stocks - Relationship Between Relative Fwd P/E of Russell 2000 vs. Russell 1000 and Subsequent 10-Year Annualized Relative Returns

For long-term investors, periods when small-cap stocks are trading at a significant discount to large-cap stocks may offer attractive investment opportunities.

Image: BofA US Equity & Quant Strategy

Relationship Between Relative Fwd PE of Russell 2000 vs. Russell 1000 and Subsequent 10-Year Annualized Relative Returns