The Russell 2000 Index, often called the small-cap index, is up about 19.6% in 2024. Much of that gain has come in the last six months, and the clarity after the U.S. presidential election is stirring animal spirits in the sector.
The bull case for small-cap stocks comes from lower interest rates and the hope that the Trump tax cuts will be made permanent. Many of these companies are still in the growth phase and rely on borrowing to fuel that growth.
