The Russell 2000 index is on fire, hitting a new all-time high after the U.S. open today!
It's up 7% in just the first 15 days of 2026, adding a whopping $220 billion in market value. This surge signals a clear rotation of capital toward higher-risk assets, like small-cap stocks.
Experts attribute this trend to several factors:
- Valuation Gap: Small-cap stocks are historically undervalued compared to large caps, making them attractive to investors.
- Interest Rates: The Federal Reserve's dovish stance and potential rate cuts could boost small-cap companies with floating-rate debt.
- Economic Resilience: A strong U.S. economy and increased M&A activity support smaller companies.
Some popular small-cap stocks to watch include:
- Opendoor Technologies (OPEN): Analysts predict a moderate buy rating with a 40% upside forecast.
- Applied Digital (APLD): Rated a buy with a potential 50% upside.
- Rocket Lab (RKLB): Analysts are bullish, citing government contracts and accelerating launch pace.
Would you like to know more about the Russell 2000's performance or explore other investment opportunities?
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