Stock Market Rebounds Strongly After Recent Sell-Off
Small-cap stocks, particularly those in the Russell 2000 index, have been performing well since the Federal Reserve signaled a potential interest rate cut. However, strategists caution that the Russell 2000 includes many unprofitable and "zombie" companies, making it less desirable. Instead, they recommend considering the S&P 600 index, which applies a profitability filter and has historically outperformed the Russell 2000.