Small-cap stocks may be poised for a powerful catch-up rally in the next six to 12 months, especially as interest rates begin to decline, according toSean Gallagher, global head ofLazard's small-cap equity platform.
After years of sharp underperformance relative to large caps, Gallagher predicts that small caps, as tracked by theiSharesRussell 2000 ETF(NYSE:IWM), are set to rally between 30 and 50% in the upcoming year, closing the gap with large-cap counterparts.
In an exclusive interview with Benzinga, Gallagher stressed the striking valuation gap between small and large caps, a key factor supporting his...
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