🔎 Large > Small

Large-cap stocks remain firmly in the lead across U.S. markets, while small caps continue to underperform.

This divergence is clearly illustrated in the accompanying table, where small-cap indices are uniformly in the red, in stark contrast to the strong green posted by large-cap benchmarks.

The breakdown in the $IWM/$SPY ratio underscores this trend, with small caps continuing to lose ground relative to their larger counterparts.

While some interpret the underperformance of small caps as a broader economic signal, the more actionable takeaway lies in identifying where the most attractive investment opportunities reside.

Over the past decade, investors have consistently been rewarded for focusing on large-cap names. That pattern continues today, fueled in part by renewed strength in growth-heavy sectors dominated by mega-cap stocks.

In this market, large caps remain the place to be.