The SMID-Cap Opportunity: Valuations, Growth and Rate Cuts

The last decade has been dominated by one pervasive theme regarding equity markets — and that’s go large. Mega- and large-cap stocks have been the driving force of the market and its returns. This has been exacerbated by the Federal Reserve’s path to higher rates over the last few years.

But now that the Fed has switched course, it may be time to think small.

Small- and mid-cap (SMID) stocks offer a compelling opportunity as the Federal Reserve cuts interest rates. Compelling valuations and a return of risk appetite make smaller stocks an ideal portfolio allocation. For investors, buying them makes a lot of sense.