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Cody Willard

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May 13, 2020, 3:55 p.m. EDT

Small-cap stocks will continue to underperform as companies lack a lifeline

Larger companies are better able to sell debt — with the Fed’s help

By Cody Willard, MarketWatch

We’re back to a wildly volatile market for small-cap stocks as large companies get richer and smaller companies get the shaft.

The iShares Russell 2000 ETF /zigman2/quotes/209961116/composite IWM +2.23%  dropped 4% on Tuesday, and it’s tumbling again Wednesday.

People were amazed that the stock market had regained almost all its losses. However, the “stock market” doesn’t really exist. The value of a stock market is the underlying value of all the stocks in the market. We can also group stocks by different criteria, also known as “indexing,” to see how sectors of the market are doing collectively. And that’s what I want to talk about today.

US : U.S.: NYSE Arca
$ 182.72
+3.99 +2.23%
Volume: 25.70M
May 26, 2022 4:00p

Cody Willard writes the Revolution Investing investment newsletter for MarketWatch and posts the trades from his personal account at TradingWithCody.com.

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