U.S. small-caps could benefit portfolios as the economy gradually recovers.
- It’s been a bumpy road to recovery as economic reopenings likely contributed to an increase in coronavirus infections, which led to renewed public health restrictions in many areas.
- Capital markets responded favorably to fiscal and monetary stimuli, but a still-challenging economic backdrop suggests that investors should look for sustained incremental improvements in key data.
- Several key metrics indicate that now may be a good time to add U.S. small-caps to investor portfolios or consider expanding existing positions.
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