By Dr. Carla Pasternak
Small cap stocks have been on a tear since February. Companies with roughly $250 million to $2 billion in market capitalization (share price times outstanding shares) in the Russell 2000 Small Cap Index have surged nearly 30%, almost twice the gains of large cap stocks in the S&P 500.
Small caps haven't always done so well. For two years through late 2015, they under-performed, with small caps losing nearly 2% versus gains of better than 7% for mid-caps and 8% for large caps.