Buying when small-caps are trading at a deep discount (on a price-to-earnings or price-to-book basis) compared to large-caps can offer a "margin of safety" for long-term gains. 4. The 7-Year Commitment
: Historically, small-caps have outperformed large-caps in the months following a Federal Reserve interest rate cut . when to buy small cap funds
Market cycles of outperformance for small-caps vs. large-caps last about on average. Buying when small-caps are trading at a deep